Tamil Nadu Launches Scheme To Spur Electronics Manufacturing

SUMMARY

The scheme will look to attract INR 30,000 Cr worth of investments and generate 60,000 jobs in the state

Under the initiative, the state government will match the IT Ministry’s grants for certain eligible applicants qualified under the Centre’s ECMS

The new scheme will target upstream components like Li-ion cells, HDI/Flexi PCBs, and sensors to deepen the electronics value chain in the state

With an eye on bolstering local electronics manufacturing, Tamil Nadu chief minister MK Stalin launched the “Tamil Nadu Electronics Components Manufacturing Scheme (ECMS)” yesterday.

The scheme will look to attract INR 30,000 Cr worth of investments and generate 60,000 jobs in the state. Under the initiative, the state government will match the IT ministry’s grants for certain eligible applicants who have qualified for the Centre’s ECMS.

“This scheme will offer matching incentives in alignment with the Union’s components manufacturing scheme,” TRB Rajaa, Tamil Nadu’s minister for industries, said in a post on X.

The scheme is aimed at promoting local manufacturing of electronics components, and complements the state’s Semiconductor and Advanced Electronics Policy, which was introduced in 2024. Tamil Nadu is already a leading player in India’s electronics manufacturing and exports.

“From leading in smartphone exports to now driving the future in components such as Camera / Display Modules and sub assemblies, Sensors, HDI/Flexi PCBs, Li-ion cells, SMD (surface-mount devices) passive components etc and we are proving once more why Tamil Nadu is the engine powering India’s manufacturing growth story,” Rajaa added.

Notably, the new scheme mirrors the IT Ministry’s new electronics component manufacturing scheme (ECMS), which offers incentives such as capital subsidies and reimbursements. The ECMS initiative supports certain eligible investments across India by offering up to 25% of capital expenditure as incentives.

That said, Tamil Nadu’s advantage lies in its existing position as a manufacturing hub. It is already among India’s top exporters of smartphones and consumer electronics, housing global OEMs like Foxconn, Pegatron, and Samsung.

Recently, homegrown electronics manufacturer Dixon Technologies signed a memorandum of understanding (MoU) with the Tamil Nadu government to set up a manufacturing facility near Chennai with a total investment of INR 1,000 Cr.

Dixon is the latest addition to the slew of companies flocking to the state to set up their manufacturing facilities, which includes iPhone manufacturer Foxconn, Samsung, VinFast, Tesla, among others.