The Southern State of Tamil Nadu is determined to boost its existing manufacturing prowess to new heights. On 7th of September, 2020, Tamil Nadu released the Tamil Nadu Electronics Manufacturing Policy 2020.
This policy was contructed and released by the Chief Minister Edappadi K. Palanisamy-led government to facilitate foreign investment in electronic systems design and manufacturing (ESDM) and promote the growth of homegrown startup enterprises.
Through the manufacturing policy, Tamil Nadu wants to raise its manufacturing output to US$100 billion by 2025 and account for 25% of India’s total electronics exports. This would also entail the skilling of more than 100,000 people by 2024. This policy is in alignment with the National Policy on Electronics 2019.
The policy also undertakes skill training for more than 1,00,000 people (semi-skilled and skilled) by 2024 to meet the incremental human resource requirement projected by NSDC for Tamil Nadu Electronics and Hardware Manufacturing sector.
Tamil Nadu Electronics Manufacturing Policy 2020 also targets to increase the level of value addition that is done in Tamil Nadu, especially across focus sectors such as mobile handsets, LED products, chip designs, PCBs, solar photovoltaic cells, medical electronics, and automotive electronics.
“The Tamil Nadu Electronics Hardware Manufacturing Policy 2020 is both the statement of the State’s vision intent and it also outlines fiscal benefits coming on top of a slew of policies launched by the Government of India. This strengthens the case for both foreign and domestic companies to establish global-scale manufacturing in India. The 100 Billion USD manufacturing target is exciting and in sync with our aspirations”, said Pankaj Mohindroo, Chairman, ICEA.
Mohindroo says that the Tamil Nadu Electronics Manufacturing policy, 2020 upkeeps the Prime Minister Narendra Modi’s vision of making India a global manufacturing hub mobile phones and electronics goods.
Under the Tamil Nadu Electronics Manufacturing Policy, 2020, the government will formulate a special package of incentives for ESDM units in the MSME sector. This will include capital subsidy, interest subvention, low tension power tariff subsidy, generator subsidy, assistance for obtaining intellectual property and assistance in obtaining certifications. MSMEs will also be assisted to scale up their business to serve as a vendor base for large and Mega investors in this sector.
“Such progressive policy interventions will push India towards ‘Atmanirbharta’ with new vigor. Both domestic and foreign companies will evaluate the credibility of various state governments in terms of their delivery over the last few years in converting promises into reality. The disbursement of fiscal incentives promised in the past will be a key deciding factor,” commented Mohindroo.