The initiative seeks to increase sectoral exports from the current $14 billion to $50 billion within the next 2–3 years.
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Tamil Nadu’s Chief Minister MK Stalin launched the Electronics Components Manufacturing Scheme on Wednesday. The scheme aims to boost the production of electronic components in the state. “This is a critical scheme to help the State achieve a target of around $50 billion in exports from the electronics sector in the next two to three years from the present $14 billion,” said Industries Minister TRB Rajaa. Tamil Nadu is the first state in the country to launch the scheme, he added.
The State’s electronics exports have witnessed a tremendous growth from $1.66 billion in FY 2020–21 to over $14.6 billion in FY 2024–25, making it India’s largest electronics manufacturing export base, he told newspersons.
The Ministry of Electronics and Information Technology (MeitY), Government of India, is already implementing an Electronics Components Manufacturing Scheme. In alignment with this, the Government of Tamil Nadu has now introduced a scheme that offers matching incentives to attract companies to the state.
Through this state-level initiative, Tamil Nadu aims to attract investments worth ₹30,000 crore and create 60,000 new employment opportunities, Rajaa said. . The scheme is to target players in smartphone component manufacturers in areas like camera / display modules and sub-assemblies, sensors, HDI/Flexi PCBs, Li-ion cells, SMD passive components, he added.
With Tamil Nadu already accounting for 41.23 per cent of India’s electronics exports, the scheme will help the State attract further investments in the sector, and not only create new high-value jobs but also embed deep capabilities in electronics components industrial landscape. This will enable the State to achieve mission of $100 billion in electronic exports in the long run, the minister said.
The matching-grants scheme is structured to mirror the Union’s electronic components scheme, with targeted support for the same segments like sub-assemblies, bare components, capital equipment and supply chain infrastructure. By offering a matching grant, we are ensuring that Tamil Nadu remains competitive in attracting these high-value, capital-intensive projects. This approach creates predictability and scalability for investors while reinforcing our policy focus on deep value-chain integration and ecosystem development, he said.
The scheme is pathbreaking in itself, by being the only scheme at this scale matching the centre. It is very evident that TN is prepared big time to woo massive investments into Electronics sector where it is already a number one contributor, Sasikumar Gendham, President, ELCINA, told businessline. “We wholeheartedly welcome such a strong investment environment for components,” he added.
Published on April 30, 2025