Tamil Nadu region secures $4.39bn from electronics giants
India's southern state of Tamil Nadu has received investment pacts from Tata Electronics Pegatron, Hyundai Motors, Vinfest and others.
The investment is a key plank of the region's 'USD 1 trillion economy by 2030' project, which it outlined in a vision document on Sunday. The government also announced a new Semiconductor and Advanced Electronics policy 2024 to attract companies to invest in the state.
It appears to have started well. Tata has committed USD 1.45 billion for mobile phone assembly operations, while Pegatron has pledged USD 1.2 billion to expand production. Auto major Hyundai Motors committed USD 740 million, and Vietnamese EV maker VinFast has assigned up to USD 2 billion to set up its first manufacturing facilities in India. TVS Group, Mitsubishi and Ashok Leyland are among the other other supporting firms.
Aside from these agreements with electronics and EV firms, the Tamil state also announced support for multiple new energy and manufacturing projects.
Tamil Nadu’s Industries Minister TRB Rajaa said: “We are the most industrialised state in India with over 45,000 factories, Tamil Nadu is a manufacturing powerhouse. We are number one in automobile and automobile component manufacturing. We are also number one in tyre manufacturing, and the country’s top electronics manufacturer contributing to over 30 per cent of India’s exports,” he said.
According to regional government data, Tamil Nadu registered USD 5.6 billion of electronic exports last year, and produces nearly 70% of EV two-wheelers and 40% of EV four-wheelers sold in India.
