We will prove it is possible to turn GIM MoUs into quality jobs: Tamil Nadu minister

CHENNAI: Tamil Nadu is working to realise "at least 70%" of the MoUs that the state signed at the recent Global Investors Meet, state industries minister TRB Rajaa said on Tuesday. "Tamil Nadu is going to prove that it is possible to turn MoUs into quality jobs for those who need it the most,” Rajaa added.

The minister was speaking at the 13th Source India Summit, an electronics supply chain event organised by ELCINA (Electronics Industries Association of India). Noting that Tamil Nadu had clocked electronics exports of $6.7 billion from April to December, the minister anticipated that the state is on track to end the fiscal year with $10 billion of exports.

Addressing the event, MEITY (ministry of electronics and IT) secretary Krishnan S said for the first time, India's electronics exports exceeded $20 billion in the period April - Dec 2023. The electronics components manufacturing is the crucial part of the overall electronics sector and the next step is to ensure the competitiveness of India's components ecosystem, he added.

"As electronics exports grow, component imports are also growing; manufacturers are putting together various components and then exporting typically...While it is a major achievement, we must focus on doubling domestic value addition from current levels of around 15%," he said.

Other delegates part of the summit noted that the component ecosystem is fragmented and needs to be brought together. Currently, India imports almost 70% of PCBs even though it has more than a 100 small and medium PCB makers, they said.

As India breached the $20 billion exports mark, Tamil Nadu's electronics exports crossed the $1 billion mark in the month of December driven by rising mobile phone exports. As per data shared by the India Cellular and Electronics Association (ICEA), mobile phone exports reached $10.5 billion during April to December 2023 - almost 52% of total electronics exports.

Atul Lall, president, ELCINA and CEO, Dixon Technologies said that the electronics manufacturing sector is on track to reach $300 bn in the next three years. "However, the value lies in IP and design, and the time has come for the industry to acquire skills sets for IP and design of electronics products," Lall said.


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