Tamil Nadu State’s Exports Report Card for 2022-23

Top electronics exporter in FY 2023

A combination of factors has catapulted Tamil Nadu’s export performance in the electronics domain, particularly in recent years. A strong industrial ecosystem has been established under the stewardship of the investment facilitation agency Guidance Tamil Nadu and supported by critical infrastructure, cost effective logistics and connectivity, a trainable supply of workers, and stable utilities services. This has helped to develop a robust supply chain in the state, which in turn supports local large scale manufacturing operations in the electronics sector.

It’s no wonder then that in FY 2022-23, Tamil Nadu witnessed a remarkable surge in its electronics exports, reaching US$5.37 billion, and nearly tripling the previous fiscal year’s figure of US$1.86 billion. This phenomenal growth has propelled Tamil Nadu from the fourth position in FY 2021-22 to the top spot in FY 2023, surpassing the performance of states like Uttar Pradesh, Karnataka, and Maharashtra.

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During FY 2022-23, Tamil Nadu exported electronic goods worth US$5.37 billion, securing the first position, with Uttar Pradesh ranking second at US$4.90 billion, and Karnataka in third place with US$4.52 billion. In the previous fiscal year, Karnataka held the top exporter title with US$3.87 billion, while Uttar Pradesh secured the second spot with US$3.77 billion, and Maharashtra stood third with US$2.08 billion.

Guidance Tamil Nadu attributes the state’s success to the influx of new industry players and the expansion of the existing manufacturing base in the state, indicating their confidence in doing business in Tamil Nadu. Key policy measures aim to foster innovation, attract investments, and cultivate entrepreneurship in the state.

Tamil Nadu’s electronics sector – SEZs and influx of MNCs

Tamil Nadu stands as a prominent state in India when it comes to electronics exports. A significant portion of the state’s electronics output comprises computers and related peripheral equipment like desktops, servers, and printers.

In the Kancheepuram District, there are two sector-specific Special Economic Zones (SEZs) dedicated to the electronic hardware sector: the Multi Sector SEZ in Oragadam and the Multi Sector SEZ in Sriperumbudur. These SEZs serve as specialized zones to foster the growth and development of the electronic hardware industry.

The entry of prominent electronics manufacturers into Tamil Nadu, including Foxconn, Tata Electronics, Salcomp, Siemens, Sony, ABB, and Pegatron, has effectively contributed to the state’s success in export-oriented production.

In fact, Tamil Nadu continues to maintain its pole position as the top exporter in the first two months of FY 2023-24. The state is followed by southern rival, Karnataka, and Uttar Pradesh in the north.

Back in FY 2020-21, Tamil Nadu accounted for just 11.98 percent of India’s total electronics goods exports, amounting to US$15.59 billion. However, in the subsequent year, its share skyrocketed to 22.83 percent, out of a total value of US$23.57 billion, per government data.

Apple contract manufacturers in Tamil Nadu – An example of the state’s expanding electronics production base

Tamil Nadu ranked top in the Export Preparedness Index for 2022

Tamil Nadu has topped the 2022 Export Preparedness Index (EPI) released by government think tank NITI Aayog, which reflects the state’s robust business and export ecosystem in 2021-22. The EPI index, which conducts a thorough evaluation of states and Union Territories based on various parameters related to exports, lists Kanchipuram, Chennai, and Tiruppur as the top exporting districts in Tamil Nadu (see full report here). 

• Apart from being known for its primary export of engineering goods, Kanchipuram district in Tamil Nadu holds a prominent position as the leading exporter of Kanchipuram Silk and its finished products.
• Chennai, on the other hand, has a diverse range of primary exports, including petroleum products, engineering goods, and drugs and pharmaceuticals.
• Tiruppur, standing at the 22nd position in the country in terms of export value, owes its success to its textile exports. These exports encompass a wide range of products, such as raw materials, cotton products, and handloom products.
• All three districts in Tamil Nadu have identified other targets to diversify their export base: biotechnological products, marine products, software services, and auto components.

Score card

In the 2022 edition of the report, NITI Aayog utilized 56 updated indicators covering four pillars, namely, policy, business ecosystem, export ecosystem, and export performance. In its Score Card, Tamil Nadu was in the top 2 ranks for three pillars and ranked 12th for policy.

• In the policy pillar, which evaluates the state and district-level adoption of export-related policies and the accompanying institutional framework, Tamil Nadu recorded a score of 97.21.
• Regarding the business ecosystem, which assesses the supportive business environment, infrastructure, and transport connectivity, Tamil Nadu secured a score of 88.84.
• The state’s focus on export-related infrastructure and trade support to exporters contributed to its score of 73.68 in the export ecosystem pillar.
• Tamil Nadu attained a score of 63.34 in export performance, an indicator that measures the state’s exports in the previous year. This indicator also takes into account the state’s export concentration and its presence in global markets.

Also read

• What Makes Tamil Nadu a Top Foreign Investment Destination in India?
• Japan’s Omron Healthcare to Open a Medical Device Factory in Tamil Nadu, India
• Tamil Nadu’s Industrial Parks and SEZs under SIPCOT: A Brief for Investors
• Tamil Nadu’s New Logistics Policy Aligns with India’s Infrastructure Masterplan

This article was originally published July 4, 2023. It was last updated July 19, 2023 with additional information.

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