Chennai: Chief Minister M K Stalin on 30 April launched the Tamil Nadu Electronics Components Manufacturing Scheme (ECMS), setting a bold target to attract Rs 30,000 crore in investments and create 60,000 jobs over the next three to five years.
The initiative is aimed at bolstering the state’s position as a hub for high-value electronics manufacturing.
The state government’s new scheme, a first in India, offers matching subsidies to companies that qualify under the Centre’s recently announced ECMS.
The central scheme, which carries a budgetary outlay of Rs 22,919 crore over six years, provides incentives through three formats – turnover-linked grants, capital expenditure-linked benefits, and a hybrid model. Tamil Nadu’s alignment with these incentives is expected to give it a competitive edge in attracting both domestic and global investors.
Industries Minister T R B Rajaa, speaking at the Secretariat, said the scheme marks a strategic shift in the state’s manufacturing vision.
“Tamil Nadu is putting skin in the game. This sends a strong message that we are serious about leading India’s electronics push,” he said. The Minister added that the scheme is designed not just to boost job creation but also to deepen the state’s technical capabilities. “We are targeting $100 billion in electronics exports,” he noted.
The ECMS will support the manufacturing of 11 high-growth component categories, including lithium-ion cells, flexible and HDI/MSAP printed circuit boards, camera/display modules and non-SMD passive components. Investment thresholds start at Rs 50 crore for basic components and go up to Rs 250 crore for more complex sub-assemblies.
High-end printed circuit boards (PCBs) will be eligible for incentives of up to 10 per cent in the first year, tapering gradually over the scheme period. A separate incentive of 25 er cent will apply to capital goods and their components for investments above Rs 10 crore.
While the scheme does not mandate specific value-addition targets, officials noted that it encourages a move from final assembly towards a more integrated manufacturing ecosystem.
Land has been earmarked near key industrial hubs to develop a self-sustaining supplier ecosystem, and outreach to global electronics component makers is already underway.
Tamil Nadu recently emerged as India’s top exporter of electronics goods, clocking record exports of $14.65 billion in FY25, accounting for 41.2 per cent of the national total. The new scheme aims to build on this momentum, with the state government projecting electronics exports to touch $50 billion within the next three to four years.
Officials said the launch of this scheme complements the Tamil Nadu Semiconductor and Advanced Electronics Policy 2024, reinforcing the state’s ambition to dominate the electronics manufacturing value chain.
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