In a landmark move to bolster India’s electronics manufacturing sector, Tamil Nadu has unveiled the nation’s first state-level Electronics Component Manufacturing Scheme. Announced on April 30, 2025, by Chief Minister M.K. Stalin, this initiative aims to attract investments worth INR 30,000 crore and generate employment for over 60,000 individuals.
Strategic Objectives
The scheme is designed to complement the Union government’s electronic component initiatives by providing matching grants to eligible manufacturers. This dual-incentive approach seeks to enhance Tamil Nadu’s position in the electronics value chain, focusing on high-value components such as:
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High-Density Interconnect (HDI) and Modified Semi-Additive Process (MSAP) boards
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Display assemblies and camera modules
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Lithium-ion cells and Surface-Mount Device (SMD) passive components
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Capital goods used in electronics manufacturing
Industries Minister TRB Rajaa emphasized, “With this scheme, Tamil Nadu becomes the first state in India to put skin in the game by matching Union government incentives.”
Economic Impact
Tamil Nadu’s electronics exports have witnessed significant growth, soaring from $1.66 billion in FY21 to over $14.6 billion in FY25. The state now accounts for approximately 41.23% of India’s electronics exports. The new scheme is expected to further amplify this growth by:
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Attracting global and domestic investments in electronics component manufacturing
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Creating a robust supply chain ecosystem
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Enhancing value-added manufacturing capabilities
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Generating high-skilled employment opportunities
Policy Synergy
The Electronics Component Manufacturing Scheme aligns with the state’s broader policy framework, including the Semiconductor and Advanced Electronics Policy 2024. This comprehensive approach aims to:
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Attract anchor investments in semiconductor and advanced electronics manufacturing
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Develop a skilled talent pool of over 200,000 individuals by 2030
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Contribute 40% of India’s electronics exports by 2030
Infrastructure Development
To support the anticipated growth in electronics manufacturing, the Tamil Nadu government has announced the development of semiconductor manufacturing parks in Sulur, Coimbatore, and near Palladam.
Each park will span over 100 acres and will be developed in partnership with companies from the US, Singapore, Malaysia, and Taiwan. 
Workforce Empowerment
A notable aspect of the southern Indian state’s electronics manufacturing sector is the high participation of women in the workforce.
Industries Minister TRB Rajaa highlighted that women’s workforce participation has reached 70-80% in some of the state’s electronics factories.
The state’s Electronics Component Manufacturing Scheme represents a significant step towards strengthening India’s electronics manufacturing capabilities.
