In a monumental shift in India’s electronics export landscape, Tamil Nadu emerges as the frontrunner, fueled by the vigorous push from tech giant Apple. The state, nestled in the southern part of India, has soared to the zenith of electronic goods exports for the fiscal year 2023-24, outshining its competitors like Karnataka and Uttar Pradesh. Marking a remarkable milestone, Tamil Nadu showcased a staggering 78 per cent surge in exports, escalating from $5.37 billion in the previous fiscal year to an impressive $9.56 billion.
This remarkable achievement not only signifies a quantum leap for Tamil Nadu but also underscores its pivotal role in the country’s electronics export ecosystem. Accounting for approximately 33 per cent of the nation’s total exports, Tamil Nadu has not only surpassed its own ambitious $9 billion target but has also emerged as a beacon of success amidst the “China Plus One” strategy embraced by global giants like Apple.
Central to this unprecedented growth are the strategic moves orchestrated by Apple’s ecosystem players, including Foxconn, Pegatron, Tata Electronics, and Salcomp. These industry stalwarts have seamlessly integrated Tamil Nadu into their global supply chains, catapulting the state to the forefront of India’s electronic manufacturing landscape.
Reflecting on this momentous feat, TRB Rajaa, Tamil Nadu’s Industries Minister, exuded confidence in the state’s burgeoning potential. “With the electronics sector just beginning to flex its capabilities, we’re racing towards another all-time high next year, and many years to come,” remarked Rajaa, highlighting the trajectory of growth that Tamil Nadu envisions.
The infusion of investments and expansion plans by key players further cements Tamil Nadu’s position as a burgeoning electronics hub. Foxconn, renowned as the world’s largest electronics manufacturer and synonymous with Apple’s iPhone production, has pledged a substantial $500 million investment in its India unit to bolster production capacities. Additionally, reports indicate a potential surge in employment, with Foxconn mulling over increasing its staff strength from approximately 15,000 to 18,000, signifying a boon for local employment.
Pegatron, Taiwan’s electronic manufacturing giant, made significant strides by inaugurating its manufacturing facility in Chennai’s Mahindra World City in September 2022. With an investment of around Rs 1,100 crore, Pegatron’s foray into India’s manufacturing landscape is poised to generate approximately 14,000 jobs, further fortifying Tamil Nadu’s economic prowess.
Similarly, Salcomp, a key supplier to Apple Inc. and the world’s leading producer of mobile phone chargers, announced plans to infuse around Rs 1,800 crore into its Tamil Nadu unit in March 2023. This strategic investment underscores the state’s attractiveness as a preferred destination for global manufacturers, reaffirming its status as a burgeoning electronics manufacturing powerhouse.
While Tamil Nadu basks in its newfound glory, other states like Karnataka, Uttar Pradesh, Maharashtra, Gujarat, Delhi, Haryana, and Telangana continue to play integral roles in India’s electronics export landscape. However, it’s evident that Tamil Nadu’s meteoric rise symbolizes a paradigm shift, propelled by Apple’s India-centric strategies and the collective efforts of industry stakeholders.
As Tamil Nadu charts a trajectory of exponential growth in the realm of electronics manufacturing and exports, it sets a compelling precedent for other states to emulate. With concerted efforts from both public and private sectors, India stands poised to emerge as a global electronics manufacturing hub, catalyzing economic prosperity and fostering technological innovation on a monumental scale.
