Tamil Nadu has achieved a significant milestone by reclaiming its position as the leading state in electronic exports within India. Experiencing remarkable growth, the state’s electronic exports reached a value of USD 5.37 billion during the 2022-23 financial year, securing a substantial 23% market share. This accomplishment can be attributed to key factors such as the establishment of major manufacturing facilities by industry giants like Tata Electronics and the successful implementation of the Indian government’s production-linked incentives for electronic manufacturing.
Amidst the challenges posed by the ongoing pandemic, Tamil Nadu has consistently demonstrated an upward growth trajectory. In the 2020-21 fiscal year, the state witnessed a growth rate of 1.6%, followed by a further increase of 1.8% in 2021-22. Notably, the latest fiscal year, 2022-23, witnessed an impressive growth rate of 5.3%. This significant surge in exports has propelled Tamil Nadu to reclaim its position as the frontrunner, surpassing other prominent states such as Uttar Pradesh, Karnataka, and Maharashtra.
The resurgence of Tamil Nadu in electronic exports can be attributed to several key factors. Foremost among them is the establishment of major manufacturing facilities by industry giants like Tata Electronics and Pegatron. These investments align with the “China plus one” strategy, aiming to diversify supply chains and reduce dependence on a single country. Additionally, the Indian government’s production-linked incentives for electronic manufacturing have incentivized companies to choose Tamil Nadu as their preferred location for setting up or expanding their operations.
Guidance Tamil Nadu, the government’s dedicated agency for investment promotion, has played a crucial role in facilitating this growth. The agency has actively fostered innovation, attracted investments, and nurtured entrepreneurship within the electronic sector. By prioritizing research and development, providing support for startups, and promoting skill development programs, Tamil Nadu has created a thriving ecosystem conducive to technological advancements and business expansion.
Under the leadership of Chief Minister M. K. Stalin, Tamil Nadu has reaffirmed its commitment to establishing itself as a hub for electronic exports and a prime destination for investments in the state. With its impressive growth trajectory and robust support system, Tamil Nadu is poised to maintain its leadership position in the electronic exports market and continue driving economic progress in the coming years.