Other BriefingsTamil Nadu Unveils India’s First State-Level Electronics Scheme
Tamil Nadu has introduced India’s first state-specific electronics components manufacturing scheme, aiming to draw investments worth INR 300 billion and generate 60,000 new jobs. The state has emerged as a major center for electronics hardware production, recording exports of US$14.65 billion in FY 2024–25.
India’s southern state of Tamil Nadu has become the first in the country to introduce a state-level electronics components manufacturing scheme. The state government initiative is expected to attract investments worth INR 300 billion (US$3.54 billion) and create over 60,000 jobs.
The announcement of a state-level electronics scheme comes shortly after the central government launched the Electronics Component Manufacturing Scheme (ECMS). This approach aims to amplify central incentives and support the growth of high-value, capital-intensive manufacturing.
State’s Chief Minister M.K. Stalin officially launched the policy on April 30, 2025. The scheme, in effect for three years from the date of notification, is expected to further strengthen the region’s electronics manufacturing ecosystem and boost production in advanced component categories.
CLICK HERE: India’s Electronics Components Manufacturing Scheme (ECME) 2025: All You Need to Know
Tamil Nadu aligns incentives with Centre to drive advanced manufacturing
Tamil Nadu is targeting acceleration of value-added manufacturing and the development of critical sub-sectors in electronics. State government Industries Minister T.R.B. Rajaa has said that the state currently contributes over 41 percent of India’s electronics exports, positioning it to attract further investments, generate high-value jobs, and build deep manufacturing capabilities. The scheme also aligns with Tamil Nadu’s broader strategic goals under the Semiconductor and Advanced Electronics Policy 2024, which seeks to integrate the entire electronics value chain—from basic components to complex assemblies.
During the Global Investors Meet (GIM) held in January 2024, Tamil Nadu unveiled its Semiconductor and Advanced Electronics Policy 2024, positioning the state as a key player in India’s high-tech manufacturing sector.
On January 7, 2024, Tamil Nadu announced its Semiconductor and Advanced Electronics Policy 2024, created to align with India’s US$10 billion semiconductor incentive scheme. To attract investment, the state government has committed to offering up to 50 percent additional financial incentives to semiconductor projects that are selected under the central government’s plan and choose to establish operations in the state.
The policy notes that eligible projects will also receive support in workforce development, including incentives for training local talent. Further benefits include concessions on stamp duty, land, and electricity costs. In addition, global research and design firms in the chip and electronics sectors that set up facilities in Tamil Nadu will be eligible for a payroll subsidy of up to 30 percent for three years, provided they hire local residents. The subsidy will be capped at INR 20,000 (US$236.6) per employee per month, aimed at encouraging high-value employment and deepening the state’s talent pool in advanced electronics.
The matching-grant framework mirrors the central government’s incentive structure and targets key manufacturing segments such as HDI and MSAP circuit boards, display units, camera modules, lithium-ion cells, SMD passive components, and capital equipment.
Tamil Nadu leads India’s electronics export growth
Tamil Nadu has firmly established itself as a leading hub for electronics hardware manufacturing and exports. Driven in part by Apple’s growing focus on India, the state recorded a 53 percent year-on-year increase in electronics exports in FY 2024–25, reaching US$14.65 billion, up from US$9.56 billion in 2023–24. This follows an even steeper 78 percent growth the previous year, when exports rose from US$5.37 billion in 2022–23.
Contributing 41.3 percent to India’s total electronics exports, Tamil Nadu has outperformed other states by a vast difference in FY 2024-25. Karnataka came in second with US$7.85 billion (22 percent), followed by Uttar Pradesh at US$5.26 billion (15 percent).
|
India’s Top Electronics Exporting States |
||
|
Rank |
State/region |
Export value |
|
1 |
Tamil Nadu |
US$14.65 billion |
|
2 |
Karnataka |
US$7.85 billion |
|
3 |
Uttar Pradesh |
US$5.26 billion |
|
4 |
Maharashtra |
US$3.51 billion |
|
5 |
Gujarat |
US$1.85 billion |
|
6 |
Telangana |
US$641.56 million |
Apple’s manufacturing shift bolsters Tamil Nadu’s role
A major player behind Tamil Nadu’s export surge is the increased production of iPhones from India to the global markets. While China still accounted for 80 percent of iPhones shipped to the US in FY 2024–25, India-assembled iPhones, including the latest iPhone 16, are increasingly meeting US demand.
Apple’s Indian vendors, particularly Tata Electronics and Foxconn, collectively exported iPhones worth over INR 1.5 trillion (US$17.74 billion) in FY 2024-25—more than double their original commitment under India’s PLI scheme. Approximately half of this value came from exports to the US.
India’s share in global iPhone production has now reached 18–20 percent. Tamil Nadu plays a central role in this expansion, hosting over seven of Apple’s 14 India-based component and assembly facilities. These include major global suppliers such as the following:
- Tata Electronics
- Foxconn (Hon Hai)
- Pegatron
- Flex
- Lingyi iTech
- Taiwan Surface Mounting Technology
- Zhen Ding Technology Holding
- On Semiconductor
ALSO READ: India’s Emerging Semiconductor Ecosystem: Key Players
As Apple continues to scale up its operations in India through its key vendors—Foxconn, Pegatron, Tata Electronics, and Wistron—Tamil Nadu has solidified its position as the cornerstone of India’s rapidly growing electronics export landscape.
Conclusion
Tamil Nadu’s introduction of a state-level electronics production scheme, along with its Semiconductor and Advanced Electronics Policy 2024, reflects its efforts to enhance participation in India’s electronics manufacturing and export ecosystem. The state aims to attract investment, strengthen value-added production capabilities, and support employment generation in the electronics sector.
Tamil Nadu’s growth in electronics exports, supported by increasing production from global firms such as Apple and its vendors, has positioned the state as a key contributor to India’s electronics output.
(US$1 = INR 84.51)
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