CHENNAI: Ministry of Electronics and Information Technology (MeitY) secretary S Krishnan said that local value addition in the electronics sector needs to go up to 30 to 35% from a mere 15% in India.
He was speaking during the 13th Source India Electronics Supply Chain event at Chennai Trade Centre on Tuesday. “No country is going to hold the entire value chain of electronic components. Even China controls only about 40 to 45%. If we have to cement India’s position, a substantial portion of components should be sourced from the country,” he said.
Krishnan added that for the first time, India’s electronics exports crossed $20 billion in the first nine months of the financial year and a major portion of the exports took place in Tamil Nadu. “With this rate, we can easily exceed last year’s target,” he said.
During the event, TN Industries Minister TRB Raja highlighted Tamil Nadu’s achievement of signing over 631 memorandum of understanding at the Global Investors Meet. Emphasizing the Dravidian model’s focus on inclusive job distribution, he stressed the significance of job quality over mere investment amounts.
Pointing out the pivotal role of Tamil Nadu’s women workforce, he noted that 43% of the state’s working women contribute significantly to both state and national economies. Expressing the Chief Minister’s vision for Tamil Nadu to become a trillion-dollar economy, he underscored the importance of upskilling talents through collaborations with companies from Germany, Japan, and other nations.
Tamil Nadu, recognized as a hub for the electronics manufacturing services (EMS) industry in India, has attracted global companies with a significant manufacturing or research and development presence in the state.
The region has also attracted a diverse range of mid and large domestic EMS companies. In the fiscal year 2022-23, Tamil Nadu witnessed a remarkable surge in electronics exports, reaching US$5.37 billion, nearly tripling the previous year’s figure of US$1.86 billion.
For the period of April-October 2023, Tamil Nadu’s electronic exports stood at $4.8 billion, showcasing a month-on-month rise of 60% from $500 million in September to $817 million in October.
The Source India Electronics Supply Chain Event featured an exhibition with more than 170 industry participants, a two-day conference themed ‘Energizing India’s Electronics Industry for Global Value Chain,’ and over 300 B2B Meetings.