Tamil Nadu Leads India in Manufacturing Growth with Global Standards

Commending Hon’ble Tamil Nadu Chief Minister Thiru M.K. Stalin’s Dravidian Model of Governance

Tamil Nadu has emerged as a guiding state for India in the field of manufacturing. Since the launch of the Make in India initiative in 2014, the national target was to increase the manufacturing sector’s contribution to the GDP to 25% by 2025. However, as of now, the national average stands at just 16%. In stark contrast, Tamil Nadu has already achieved the 25% manufacturing contribution to its Gross State Domestic Product (GSDP), setting an example for the rest of the country.

Global Manufacturing Hub

Tamil Nadu is home to world-renowned manufacturing facilities including Foxconn, Pegatron, Samsung, Hyundai, Kobart, Nissan, and TVS Motors. The state also hosts Apple suppliers employing over 50,000 workers producing millions of devices. Additionally, Feng Tay, the major global supplier for Nike, operates several facilities with over 37,000 employees. Tamil Nadu houses more than 31,000 functioning manufacturing units — the highest in India.

Leader in India’s Exports

Tamil Nadu has become a leading exporter of automobiles, auto components, electronics, and textile products. Although the state’s population accounts for less than 6% of India’s total, it contributes 15% to India’s non-oil exports. The state exports 41% of India’s electronic goods, 38% of its footwear, and 45% of automobiles and auto components. Due to its robust manufacturing growth, Tamil Nadu contributes 9.69% to the national GDP — the highest among all Indian states.

Pillars of Tamil Nadu’s Success

1. Infrastructure and Industrial Clusters
   These achievements didn’t happen overnight. The Tamil Nadu government has consistently invested in ports (like Chennai and Thoothukudi), industrial corridors, and dedicated industrial lands. The formation of SIPCOT (State Industries Promotion Corporation of Tamil Nadu) in 1971 by the DMK government laid the foundation for numerous industrial parks and significantly strengthened the state’s infrastructure, attracting massive investments.
2. Proactive Support to Investors
   Unlike other states where single-window clearances and investor summits are often symbolic, Tamil Nadu’s Guidance Tamil Nadu serves as a fully functional investment facilitation agency. It assists companies with land acquisition, approvals, labor issues, and other operational challenges, instilling confidence among investors.
3. Efficient Governance and Administration
   Tamil Nadu’s administrative machinery works not as a hurdle but as an enabler of development. For instance, soon after the Central Government announced a production-linked incentive (PLI) scheme for electronic component manufacturing, Tamil Nadu swiftly followed up with a state-level incentive policy within a week, aiming to grow electronic exports from $14 billion to $100 billion. The government also acts swiftly in labor issues, such as resolving a strike at Samsung through amicable intervention, demonstrating efficient governance.

Vision 2030

Tamil Nadu aims to become a $1 trillion economy by 2030. It is already serving as a benchmark for other Indian states like Andhra Pradesh, Telangana, Uttar Pradesh, Madhya Pradesh, Gujarat, and Maharashtra. If these states adopt Tamil Nadu’s successful model, India can firmly establish itself as a global manufacturing powerhouse.

Issued by:
Director, Department of Information and Public Relations, Chennai-9