Tamil Nadu regained the top spot in electronic exports in India
Tamil Nadu regained the top spot in electronic exports in India: Tamil Nadu has restored its status as India’s leader in electronic exports, which is a noteworthy accomplishment. The state’s electronic exports, valued at USD 5.37 billion in the fiscal year 2022-23, now account for 23% of the electronics market. This remarkable growth can be attributed to various factors such as the establishment of major manufacturing facilities by Tata Electronics and the implementation of Indian government’s production-linked incentives for electronic manufacturing.
Steady Growth in Exports
The export data reveals a consistent upward trend in Tamil Nadu’s electronic exports. Despite challenges posed by the pandemic, the state witnessed a growth rate of 1.6% in the 2020-21 financial year, followed by 1.8% in 2021-22. Notably, in the latest fiscal year, 2022-23, the growth rate jumped to an impressive 5.3%. With this considerable increase in exports, Tamil Nadu has surpassed other notable states such as Uttar Pradesh, Karnataka, and Maharashtra.
- Growth Rate of Tamil Nadu per financial year:
| Financial Year | Growth Rate (In Percentage) |
| 2020-21 | 1.6% |
| 2021-22 | 1.8% |
| 2022-23 | 5.3% |
Factors Driving Growth
Several key factors have contributed to Tamil Nadu’s resurgence in electronic exports. First and foremost, the establishment of major manufacturing facilities by industry giants like Tata Electronics and Pegatron has played a vital role. These investments are part of China’s plus one policy, which seeks to diversify supply chains and lessen reliance on a single country. Additionally, the Indian government’s production-linked incentives for electronic manufacturing have incentivized companies to set up or expand their operations in Tamil Nadu.
Promoting Innovation and Entrepreneurship
‘Guidance Tamil Nadu‘, the government’s nodal agency for investment promotion, highlighted the state’s commitment to fostering innovation, attracting investments, and nurturing entrepreneurship in the electronic sector. By actively encouraging research and development, providing support for startups, and promoting skill development programs, Tamil Nadu has created an ecosystem conducive to technological advancements and business growth.
Key takeaways for competitive examinations
- ‘Guidance Tamil Nadu’ is the investment promotion agency of the Government of Tamil Nadu founded in 15 July 1992. It is constituted to reach out to prospective investors and make them invest in the state of Tamil Nadu.
- M. K. Stalin is the Chief Minister of Tamil Nadu.