Centre approves two Electronics Manufacturing Clusters worth US$ 105 million in Tamil Nadu
- IBEF
- July 23, 2026
The Centre has approved two Electronics Manufacturing Clusters (EMCs) in Tamil Nadu with a combined investment of Rs. 1,012.02 crore (US$ 104.96 million) to strengthen the state's electronics manufacturing ecosystem and accelerate India's self-reliance in electronics production. Announcing the decision in a written reply in the Lok Sabha, Union Minister for Electronics and Information Technology Mr. Ashwini Vaishnaw said the clusters will be developed at Manallur and Pillapaikkam. The Manallur EMC will span 474.3 acres with an investment of Rs. 587.47 crore (US$ 60.93 million), while the Pillapaikkam EMC will cover 379.3 acres with a project cost of Rs. 424.55 crore (US$ 44.03 million). The initiative is expected to attract investments, strengthen the electronics supply chain and create a robust manufacturing ecosystem, further reinforcing Tamil Nadu's position as one of India's leading electronics manufacturing destinations.
The Government highlighted that India's electronics manufacturing sector has recorded significant growth over the past decade, supported by initiatives such as the Production Linked Incentive (PLI) Scheme, liberalised foreign direct investment (FDI) norms, tax reforms and labour reforms. Electronics production has increased from nearly Rs. 1.90 lakh crore (US$ 31.08 billion) in 2014-15 to around Rs. 13.11 lakh crore (US$ 148.35 billion) in 2025-26, while exports have grown from about Rs. 38,000 crore (US$ 6.22 billion) to Rs. 4.24 lakh crore (US$ 47.98 billion) during the same period. Mobile phone production has expanded more than thirty-fold to Rs. 6.27 lakh crore (US$ 70.95 billion), with exports reaching Rs. 2.59 lakh crore (US$ 29.31 billion). India now manufactures nearly 99.2% of the mobile phones sold domestically, while the sector provides employment to nearly 25 lakh people. The new EMCs are expected to further strengthen domestic manufacturing capabilities, boost exports and support India's emergence as a global electronics manufacturing hub.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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