Why Tamil Nadu ?
Innovation DNA
Sectors
Automobile, Auto Components & EV
Electronics
Semiconductors
Textile, Apparel & Technical Textiles
IT & ITeS
GCC & R&D
Aerospace & Defence
Food Processing
Leather & Footwear
Renewable Energy
Heavy Engineering
Light Engineering
Life Sciences
Chemicals & Petrochemicals
Railway
Shipbuilding
Data Centre
Gems & Jewellery
Toys
Furniture
Tourism & Hospitality
Industrial Parks

Tamil Nadu's light engineering landscape is anchored by large, globally competitive manufacturers across pumps, valves, fasteners, motors, and light machinery, with MSMEs operating as tiered suppliers within well-structured value chains rather than as the core focus. This strong, large-industry backbone is organised into powerful industrial clusters that integrate advanced manufacturing capabilities with proximity to ports, deep talent pools, and engineering-intensive ecosystems.
Major engineering and automotive manufacturing hubs across Chennai, Coimbatore, Hosur, and Tiruchirappalli host globally certified facilities with end-to-end capabilities in design, testing, machining, and assembly. These anchor units support dense regional supplier networks for castings, forgings, and precision components, reinforcing Tamil Nadu's position as a high-quality, export-oriented engineering base.
Large OEM-led engineering and automotive firms anchored in major industrial parks form the backbone of Tamil Nadu's manufacturing ecosystem with robust infrastructure and integrated capabilities. These anchors drive supplier expansion into Tier-2 and Tier-3 regions.
A deep talent pipeline from engineering colleges, polytechnics and ITIs is reinforced by large anchor manufacturers through targeted training and supplier capability upgrading.
Tamil Nadu's industrial policies offer capital incentives, tax-linked benefits and support for technology, quality and exports, with differentiated packages for large investments, while cluster- and corridor-based initiatives lower costs and strengthen integrated manufacturing ecosystems.
Engineering goods form a major share of Tamil Nadu's exports, contributing an estimated 15–16% of India's engineering shipments, while strong domestic demand from infrastructure, power, automotive and construction sectors ensures market diversification.


Tamil Nadu Industrial Policy 2021
Varadaraj S
varadharaj@investtn.in
Pradeep R
pradeep@investtn.in
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