- In FY23, Tamil Nadu emerged as India’s leading exporter of electronic goods, accounting for 30% of overall electronic goods exports in FY24.
- Historically, the state lags behind Uttar Pradesh and Karnataka in this sector until FY22.
- However, in recent years, Tamil Nadu has seen constant rise in electronic goods exports, while other states have seen rates decrease or remain static.
Chart 1 shows the electronic goods exported from Tamil Nadu in $ billion, year-wise
- Between April 2023 and January 2024, Tamil Nadu exported electronic items worth approximately $7.4 billion.
Chart 2 displays the exports of electronic items of the top five states in India, in $ billion, year by year
- In FY24, Tamil Nadu’s exports surpassed the combined exports of Uttar Pradesh and Karnataka, which totaled $6.7 billion.
- Uttar Pradesh and Karnataka were placed second and third in terms of electronic products exports.
- Gujarat and Maharashtra, both in the top five exporting states, have seen lacklustre growth in recent years.
Chart 3 displays the commodity-specific share of total exports from India for FY24 (until February) in $ billion.
- Engineering items were India’s most important export category during the given period, accounting for $98 billion in total.
- Petroleum products trailed closely behind, with exports totaling $78 billion.
- Gems and jewellery were another prominent export sector, with a total export value of $30 billion.
- Electronics items were also notable, while ranked lower than other categories, with exports totaling $25 billion. In FY18, electronics items did not rank among India’s top ten most exported exports.
Biggest markets
- Top importer of India’s electronic goods: The United States and the United Arab Emirates (UAE) are India’s major markets for electronic goods exports. In FY24 (through February), the United States accounted for over 35% of India’s electronic products exports, totaling $8.7 billion, while the UAE contributed for 12%, totaling $3 billion.
- Other countries share:The Netherlands and the United Kingdom (UK) each accounted for approximately 5% of India’s electrical goods exports.
- The principal destination: Since FY21, the United States has been India’s primary destination for electronics exports, with its proportion growing dramatically in recent years.
Conclusion
Tamil Nadu’s rise as a prominent electronics exporter, accounting for 30% of India’s total exports, is underlined. The importance of Kancheepuram district, together with Tamil Nadu’s victory over Uttar Pradesh and Karnataka, highlights the state’s increase in electronic goods exports.
Source: https://www.business-standard.com/industry/news/tamil-nadu-contributes-to-32-of-india-s-total-electronics-exports-till-jan-124022901014_1.html#:~:text=Tamil%20Nadu%20has%20continued%20to,to%20January%20during%20the%20current