Tamil Nadu becomes first Indian state to launch electronics component manufacturing scheme offering matching grants to central incentives, targeting ₹30,000 crore investments and 60,000+ jobs.
Tamil Nadu Pioneers State-Level Electronics Component Manufacturing Scheme
Chennai – In a landmark move for India’s electronics manufacturing sector, Tamil Nadu has become the first state to launch a dedicated Electronics Components Manufacturing Scheme, offering matching grants to complement central government incentives.
Key Highlights of the Scheme:
✔ First state-level matching-grant policy for electronics components
✔ Targets ₹30,000 crore investments and 60,000+ new jobs
✔ Complements Centre’s Electronics Component Manufacturing Scheme
✔ Aims to boost high-value manufacturing (HDI boards, display modules, Li-ion cells, etc.)
✔ Strengthens TN’s position as India’s top electronics exporter (41.23% share)
Why This Matters?
- Fills Critical Gap: Most electronics manufacturing still relies on imported components.
- Value-Chain Boost: Moves TN from assembly to full-fledged component production.
- Export Growth: Supports state’s $100 billion electronics export vision.
- Job Creation: High-skilled roles in advanced manufacturing.
TN’s Electronics Manufacturing Dominance
| Metric | FY2021 | FY2025 |
|---|---|---|
| Electronics Exports | $1.66 Bn | $14.6 Bn |
| Share of India’s Exports | ~15% | 41.23% |
Industry Reactions
TRB Rajaa, TN Industries Minister:
“This scheme is our commitment to making Tamil Nadu the electronics capital of India. By matching central incentives, we’re ensuring investors get the best ecosystem for high-value manufacturing.”
Industry Expert (Anonymous):
“TN’s policy-first approach gives it an edge over competing states. The focus on components is crucial for reducing import dependence.”
Focus Areas Under the Scheme
- High-Density Interconnect (HDI) Boards
- Display & Camera Modules
- Lithium-Ion Battery Cells
- SMD Passive Components
- Semiconductor Equipment
Strategic Alignment
- Works alongside Tamil Nadu Semiconductor Policy 2024
- Complements PLI Schemes for electronics
- Supports “Make in India” self-reliance goals
What’s Next?
- Global & domestic investor roadshows
- Skill development partnerships for advanced manufacturing
- Infrastructure upgrades in electronics manufacturing clusters