The government of Tamil Nadu, on April 30, 2025, became the first in the country to introduce a dedicated Electronics Components Manufacturing scheme. The initiative is projected to attract investments of Rs 300 billion and create employment opportunities for over 60,000 people.
Under this scheme, the state will provide matching grants to supplement the incentives under the Union government’s electronics component schemes. M K Stalin, chief minister, government of Tamil Nadu, launched the Tamil Nadu Electronics Components Manufacturing scheme, targeting component manufacturers eligible under the recently announced central government scheme. This move aims to draw high-value investments and skilled jobs, helping Tamil Nadu climb up the electronics manufacturing value chain.
Through matching incentives, the state seeks to amplify national-level investments and encourage value-added manufacturing across critical electronics sub-segments.
Further, the government of Tamil Nadu is aiming to expand into complex, high-value manufacturing and capture the full electronics supply chain. The new scheme complements Tamil Nadu’s broader industrial vision, including the Tamil Nadu Semiconductor and Advanced Electronics Policy (2024). It is expected to draw both global and domestic players in areas such as HDI or MSAP boards, display assemblies, camera modules, lithium-ion cells, SMD passive components, and electronics manufacturing capital goods.