The year 2024 has been a landmark for Tamil Nadu’s electronics sector, solidifying its position as India’s top electronics exporter for the second consecutive year. With an impressive export order value of $9.56 billion in FY24, the state accounted for a third of the national total of $29.12 billion. Tamil Nadu’s performance dwarfed that of Karnataka ($4.6 billion) and Uttar Pradesh ($4.46 billion), its closest competitors.

Record-Breaking Growth

Tamil Nadu’s electronics exports grew by a staggering 78% compared to the previous fiscal, a testament to the state’s robust industrial ecosystem and its strategic focus on the sector. The momentum from FY24 has carried forward into FY25, with exports from April to September already crossing $6 billion.

This phenomenal growth is attributed to significant investments and the operational scaling of global players such as Salcomp, Pegatron, and Foxconn, whose plants in the state are running at full capacity. In September, American tech giant Cisco, in collaboration with global manufacturer Flex, launched its first Indian plant in Sriperumbudur, further strengthening Tamil Nadu’s high-tech manufacturing ecosystem.

The Power of the Supplier Ecosystem

Nikhil Rao, Vice President of Operations at Cisco, emphasized the broader implications of this partnership: “It meant high technology products, a highly skilled workforce — labor force as well as talent — and a manufacturing ecosystem, which means the supplier ecosystem as well.”

This robust supplier ecosystem has been instrumental in positioning Tamil Nadu as a global electronics hub. The state’s industries minister, TRB Rajaa, highlighted the roadmap ahead: “The already-existing infra will take us to $12 billion now. What we are seeing is more down-the-value-chain coming in — the entire supply chain, probably, of Apple, is what we’re looking at.”

Investment Surge and Future Prospects

Major investments are pouring into Tamil Nadu’s electronics sector. Tata Electronics announced ₹7,000 crore to expand its components plant in Hosur, Foxconn pledged ₹13,000 crore in further investments, and US-based Jabil committed ₹2,000 crore. These expansions will position Tamil Nadu as the host of four of Apple’s largest global suppliers.

The state is now aiming even higher. “Right now, we are 35% of India’s output,” said Rajaa. “We would definitely want to go higher.”

With the state’s electronics exports projected to exceed $12 billion in FY25, Tamil Nadu is poised to set new benchmarks for India’s electronics industry. Should the current momentum persist, this figure might represent just the beginning of an era of unprecedented growth and global dominance.