TN launches India's first state electronics component manufacturing scheme

Adding to the state's recent success in electronics manufacturing and exports, the government of Tamil Nadu on Wednesday became the first in the country to launch a dedicated Electronics Components Manufacturing Scheme. The initiative is expected to attract investments worth Rs 30,000 crore and generate employment for over 60,000 people.
Under the scheme, the state government will provide matching grants to complement the incentives offered by the Union government's electronic component schemes. On Wednesday, chief minister M K Stalin launched the Tamil Nadu Electronics Components Manufacturing Scheme, aimed at component manufacturers who qualify under the Union government's recently announced Electronics Component Manufacturing Scheme. This landmark policy aims to attract high-value investments and jobs by enabling Tamil Nadu's electronics manufacturing ecosystem to move up the value chain.
The scheme comes at a time when the state's electronics exports have grown significantly—from $1.66 billion in FY21 to over $14.6 billion in FY25—making Tamil Nadu the largest electronics manufacturing export base in India. The state will offer matching incentives to approved applicants under the national scheme, amplifying the impact of investments and catalysing value-added manufacturing across key sub-segments.
'We are proud to announce India's first state-level matching-grant scheme for electronics. The Tamil Nadu Electronics Components Manufacturing Scheme is a strategic leap forward and a statement of intent that we are backing ambition with policy. We are sending a clear message to global and domestic investors that Tamil Nadu is the most committed and capable partner in India's electronics growth story,' said TRB Rajaa, minister of industries, government of Tamil Nadu.
'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,' Rajaa added.
The government is seeking to expand into more complex, higher-value areas and capture the entire supply chain. The announcement aligns with Tamil Nadu's broader policy framework, including the Tamil Nadu Semiconductor and Advanced Electronics Policy (2024). The scheme is expected to attract leading global and Indian firms 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 used in 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.

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