Tamil Nadu Introduces India's First State Electronics Manufacturing Scheme

The Tamil Nadu government, building on the state's recent successes with electronics manufacturing and exports, launched the state's first dedicated Electronics Components Manufacturing Scheme, which targets Rs 30,000 crore worth of investment to create over 60,000 jobs.

The scheme will provide matching grants to the incentives already offered by Union government's electronics component schemes. The Chief Minister, M K Stalin, announced Tamil Nadu's Electronics Components Manufacturing Scheme to targeted component manufacturers recognized under the newly unveiled the Union government's Electronics Component Manufacturing Scheme. This policy aims to attract high-value investment and create jobs in the state, giving Tamil Nadu's electronics manufacturing sector an opportunity to increase its position in the value chain.

The initiative is launched when the state's electronics exports have risen exponentially—from $1.66 billion in FY21 to north of $14.6 billion by FY25—making Tamil Nadu the largest electronics manufacturing export base in India. The state will provide matching incentives to approved applicants from the national scheme, magnifying the effect of investments and stimulating value-added manufacture, across strategic sub-segments.

“With the scheme, Tamil Nadu becomes the first state in India to put skin in the game by matching Union government incentives. With the state already accounting for 41.23 per cent of India’s electronics exports, this scheme will help us attract further investments in the sector, and not only create new high-value jobs but also embed deep capabilities in our electronics components industrial landscape, enabling us to achieve our mission of $100 billion in electronic exports,” said TRB Rajaa, minister of industries, government of Tamil Nadu.

The government seeks to diversify its growth into more complex, higher-value areas and capture the full supply chain. This announcement sits within Tamil Nadu's broader policy framework including the Tamil Nadu Semiconductor and Advanced Electronics Policy (2024). 

Following the expansion of the electronics export market in Tamil Nadu, the scheme is expected to attract leading Indian and global companies in sub-segments such as HDI (high-density interconnect) or MSAP (modified semi-additive process) boards, display assemblies, camera modules, lithium-ion cells, SMD passive components, and capital goods within electronics manufacturing.

“The matching-grants scheme is carefully structured to mirror the Union’s electronic components scheme, with targeted support for the same segments — including 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.