T.N. likely to become $150 billion electronics hub by 2030, says State Industries Minister T.R.B. Rajaa

The electronics manufacturing industry aims to hit $500 billion by 2030, and Tamil Nadu will likely be a $150 billion market then, State Industries Minister T.R.B. Rajaa said in Chennai on Tuesday.

“Tamil Nadu has around 41% share in India’s total electronics exports during the financial year (FY) 2025 at $15 billion. This is likely to have grown to 45% in FY2026,” he said, expressing concern that the Centre has not released State-wise data on electronics exports for the current financial year.

At the 15th edition of Source India-Electronics Supply Chain, organised by the Electronic Industries Association of India (ELCINA), Mr. Rajaa said: “We have done everything possible in India. Now, we want to go compete with the world, which we have been doing in several sectors for a long time. We have expertise in manufacturing and services, and the next big thing to do is R&D (Research and Development)”. He requested the stakeholders present at the event to invest more in R&D.

Sasikumar Gendham, president of ELCINA, said: “Electronics is no longer just an industry — it is the infrastructure for modern civilisation. From mobility and healthcare to defence, energy, AI and space, it sits at the core of every national priority. As global supply chains are being re-imagined, with reliability and resilience becoming as important as cost, India stands at a historic inflection point. The question is not whether India can play a global role, but how fast and how decisively we scale.”

He then pointed out we must move decisively beyond low-value assembly into design-led manufacturing, advanced components and materials, tooling and IP ownership. Mr. Gendham said electronics leadership demanded strong component ecosystems, MSME integration, academia-industry collaboration, and deep supplier development. “With established clusters in Chennai, Sriperumbudur, Hosur, Coimbatore, and Tiruchirappalli, Tamil Nadu has built a full-stack electronics ecosystem — from design and components to final assembly and exports,” he added.

Atul Lall, vice-chairman and managing director, Dixon Technologies India Ltd. and past ELCINA president, said: “India’s electronics manufacturing sector is entering a phase of accelerated growth, driven by scale, policy support and increasing global confidence. The next phase of competitiveness will depend on deeper localisation, strong component ecosystems and continued investment in technology and skills.”

A report on the Tamil Nadu Electronics Industry, released at the event, said the State accounted for 28.6% of India’s electronics manufacturing gross sales value, ranking second only to Uttar Pradesh. “However, Tamil Nadu is aggressively investing in the future as it leads in actual asset addition within the electronics industry, with a commanding 47.6%. The State’s overall exports in 2023-24 was estimated at $43.5 billion, with 22% attributed to electronics exports,” the report stated. It added: “Tamil Nadu also has 191 units related to electronics manufacturing. With the state having the most units producing mobile handsets and related components, Tamil Nadu’s exports are $14.65 billion. These factors show how the sector has seen a rise of 414% from 2021-22, when electronics exports were a mere $1.86 billion.”

The report also gave some recommendations on creating a dedicated electronics manufacturing promotion agency, establishing a semiconductor technology park, and investing in an advanced testing and certification centre.