In a remarkable stride, Tamil Nadu has established a substantial lead in the export of electronic goods, positioning itself to reach an impressive $8 billion in electronic exports by the end of the fiscal year 2024. The electronic exports from Tamil Nadu for the period spanning April to October 2023 have soared to $4.8 billion, nearly doubling the figures of the second-ranking state, Uttar Pradesh, which stands at $2.5 billion.
On a month-on-month basis, Tamil Nadu experienced a substantial 60% rise in electronic exports, leaping from $500 million in September to an impressive $817 million in October. Industry experts attribute this surge to the launch of Apple’s new iPhone model in September, typically elevating total mobile phone exports for the month. Concurrently, other players in Tamil Nadu are intensifying their efforts to boost exports.
In response to the notable increase in exports, State Industries Minister TRB Rajaa expressed optimism that Tamil Nadu could achieve a record $8 billion in electronics exports for the fiscal year 2024. With a current export tally of approximately $4.8 billion, Tamil Nadu holds a dominant 31% share of total electronics exports from India, nearly double that of the second-ranking state.
The state’s robust position is bolstered by the presence of a robust contract manufacturer ecosystem, featuring industry giants such as Foxconn, Pegatron, and Flex. Tamil Nadu currently commands a 30% share of India’s electronics exports, with Uttar Pradesh following at 16% and Karnataka at 14%.
Nationally, driven by mobile phone exports, electronic goods exports during April–October 2023 recorded a substantial 28% year-on-year increase, amounting to $15.48 billion.
For the fiscal year ending March 2023, Tamil Nadu surpassed industrial peers like Uttar Pradesh, Karnataka, and Maharashtra, securing its position as India’s top electronics exporter. This marked a significant achievement, considering it was the first time since its Nokia heyday. The electronics exports from Tamil Nadu stood at $5.37 billion in FY23, a notable surge from $1.86 billion in FY22. This propelled the state from the fourth position in FY22 to clinch the top spot in FY23.
Industry analysts attribute this growth to increased iPhone exports from Apple’s contract manufacturer Foxconn, the commencement of operations at another Apple supplier Pegatron, and robust exports of telecom equipment and other products. The electronics components ecosystem has expanded with the entry of Delta Electronics and others in the last fiscal year. Furthermore, companies like Sanmina commenced operations of their joint venture with Reliance in Sriperumbudur in October 2022, focusing on telecommunications equipment, medical equipment, and automotive electronics. Finnish players like Salcomp have also witnessed a significant uptick in exports.
As the state continues to lead in electronic exports, this trend is indicative of Tamil Nadu’s growing influence in the electronics manufacturing landscape, solidifying its position as a key contributor to India’s export economy.
