Tamil Nadu’s Role in India’s Electronics Exports

Tamil Nadu’s Role in India’s Electronics Exports

Subject: Economy

Section: External sector

• Key Statistics:
  • Tamil Nadu, in FY24, accounted for 30% of all electronic goods exports from India.
  • The district of Kancheepuram alone contributed close to 40% of India’s smartphone exports in the last two fiscal years.
  • The state has seen a significant rise in its contribution to electronics exports, overtaking states like Uttar Pradesh and Karnataka.
• State-wise Comparison:
  • Tamil Nadu’s electronic goods exports in FY24 surpassed the combined exports of Uttar Pradesh and
  • The gap between Tamil Nadu and other top exporting states like Gujarat and Maharashtra has widened.
  • Exports from Gujarat and Maharashtra have shown stagnation in recent years.
• Trend in Exports:
  • From April 2023 to January 2024, Tamil Nadu exported electronic goods worth over $7.4 billion, nearly four times the volume in FY22.
• Commodity-wise Share:
  • Engineering goods dominated exports ($98 billion), followed by petroleum products ($78 billion), gems and jewellery ($30 billion), and electronics goods ($25 billion).
  • In FY18, electronic goods were not even in the top 10 most exported commodities, with an export value of just $0.8 billion.
• Major Markets:
  • The S. and the UAE are the largest markets for India’s electronic goods exports.
  • In FY24, the U.S. imported nearly 35% of India’s electronic goods exports ($8.7 billion), followed by the UAE at $3 billion (12%).
  • The Netherlands and the U.K. each accounted for about 5% of India’s electronic goods exports.
• Shift in U.S. Imports:
  • Since FY21, the U.S. has remained the primary destination for India’s electronics exports.
  • The S.’s share in India’s electronics exports has increased significantly in recent years, reaching 24-34% in the latest two fiscal years.
• Inference:
  • The surge in smartphone exports from Kancheepuram district, Tamil Nadu, has significantly boosted India’s electronics exports.
  • Most of these exports, particularly smartphones, have been directed to the U.S., the world’s largest importer of smartphones.

Why TamilNadu?

Good industrial climate, availability of skilled or trainable labour, especially women with high productivity and good logistics connectivity of the airport has attracted leading electronics manufacturers to Tamil Nadu.