Production Linked Incentives Schemes in India


Home to the highest number of factories in India - over 37,220 units

Tamil Nadu has a diversified manufacturing sector and features among the leaders in several industries such as automobiles, pharmaceuticals, textiles, leather products, chemicals, among others.

Tamil Nadu is situated at the South-Eastern extremity of the Indian Peninsula. The state is bounded on the north by Karnataka and Andhra Pradesh, on the west by Kerala, on the east by the Bay of Bengal, and on the South by the Indian Ocean. Tamil Nadu has a well-developed infrastructure with an excellent road and rail network and seven airports. The state’s coastline of 1,076 km, is the second-longest in India and has 4 major ports. Tamil Nadu ranks #3 in Export Preparedness Index in 2020. Moreover, the state is the highest contributor to India's renewable energy capacity at 16 GW and has a total installed power capacity of 32,620 MW.

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Highest number of operational SEZs (41) in India

Ranked 9th globally in net share of wind energy in total power generation

Among top 10 manufacturing hubs in the world with over 1.7 million installed capacity of cars

Focus sectors Tamil Nadu

Automobile and Auto-Components

Tamil Nadu accounted for 45% of the total auto exports from India in 2017-18

It is also the export hub of passenger vehicles, accounting for 70% of India's overall exports. Chennai, the capital of Tamil Nadu, is one of the largest auto hubs of India. Tamil Nadu is the largest tyre manufacturing state in India and home to over 80 auto component manufacturers.

Chennai is the Automobile Capital of India. Chennai has an annual installed capacity of 1.71 million car units. Chennai has an installed capacity to produce

  • Three cars every minute
  • One truck every 2 minutes
  • One motorcycle every 6 seconds Kamarajar Port in Ennore, Chennai has dedicated berths for automobile exports
Focus sectors Tamil Nadu


Home to India’s first Defence Corridor

Aerospace Park in Sriperumbudur with an Advanced Computing and Design Engineering Centre (ACDEC) is under construction

  • More than 120 aerospace manufacturing companies have their presence in the State
  • More than 700 suppliers to various defence PSUs are operating in Tamil Nadu
  • More than 5000 aerospace engineers graduate every year from Tamil Nadu
  • The state is planning Special Purpose Aviation Resource Cluster SEZs (SPARKS) to boost investments in the sector and to create 100,000 direct and indirect employment opportunities for highly skilled resources
Focus sectors Tamil Nadu

Renewable Energy

Tamil Nadu has the highest renewable energy capacity in India of 11.934 GW

Ranks 9th Globally in net share of Wind energy in Total power generation. The State has harnessed around 13,000 million units of Wind Energy during the year 2017-18 The state has an advantageous geographical position that offers it a potential of 500 MW of biomass power and a solar incidence of 5.5 - 6 kWh/sqm/day.

Electric Vehicles

Chennai is home to major automobile manufacturing companies in India, such as Hyundai, Ford, Nissan, TVS, Mahindra, Daimler, etc.

It has a huge scope for upgradation and expansion for producing Electric Vehicles within the exiting manufacturing facilities. The first EV SUV made in India was manufactured in Tamil Nadu by Hyundai.

Government of Tamil Nadu will replace the existing 21,000 public transport buses at the rate of 5% every year and introduce 1000 new buses may be introduced every year.

Government of Tamil Nadu will reimburse employee’s contribution to the Employees’ Provident Fund up to INR 48,000 per person as skill subsidy for a period of one year.

Focus sectors Tamil Nadu


Tamil Nadu ranks 2nd in India in Computer, Electronics and Optical Products manufacturing, accounting for 16% of National Production

The state ranked 3rd in India in terms of Electronic Exports ($1.27 bn) in FY 2017-18.

There are two sector-specific SEZs for Electronics & Hardware Sector in Kancheepuram district. They are

  • Electronic/Telecommunication Hardware Hi-Tech SEZ (486 acre) in Sriperumbudur
  • Electronic Hardware Hi-Tech SEZ (348 acre) in Oragadam
Focus sectors Tamil Nadu

Food Processing

Tamil Nadu contributes 7% to India’s food processing output

First state to implement contract farming. Significantly easing investor participation in the Agro & Food processing sector

3.48 lakh hectare of inland waterbodies and 56,000 hectare of backwaters enabling favourable fisheries ecosystem

In Tamil Nadu, frozen shrimp maintained its position as the key contributor to seafood export of 76,414 MT valued for INR 4,106 crores in 2017-18.

Focus sectors Tamil Nadu

Heavy Engineering

Tamil Nadu ranks 3rd in India in production of General Purpose and Special Purpose Machinery

Ranks 2nd in India in Heavy Engineering Exports - FY 2017-18.

Heavy Engineering exports from Tamil Nadu grew at a CAGR of 8% between 2013-14 and 2017-18 and stood at $2.49 bn in 2017-18.

Focus sectors Tamil Nadu

Pharmaceuticals and Biotechnology

Tamil Nadu is the 5th largest producer of pharmaceutical products in India and accounts for 10% of the total pharmaceutical production of the country.

The state has existing and upcoming SEZs and dedicated bio-pharmaceutical parks that offer research labs, advanced medical equipment and genetic engineering as some of the facilities. The state government has initiated various flagship infrastructure projects in the sector such as the TICEL Biotech Park-II in Chennai, TICEL Biotech Park-III in Coimbatore and Marine Biotech Park near Mahabalipuram.

Focus sectors Tamil Nadu

Textile and Garments

Tamil Nadu ranks 1st in apparel production and 2nd in textile production in India. It houses India's largest spinning industry, accounting for almost 40% of the total installed capacity of the country.

The state is also the largest producer of cotton yarn in India and accounts for 41% of the country’s production. Textile and apparel sector together provide employment to 35% of the state's population. The state has about 6 upcoming textile parks and 2 upcoming apparel parks.

Tamil Nadu contributes to one third of the Textile Business in India making it the Textile Valley of India

Tamil Nadu is called the Yarn Bowl of India since it produces 40% of the total yarn in India

Out of 13,000 garment units in India, 6,500 units are located in Tamil Nadu

Focus sectors Tamil Nadu

Information Technology

Tamil Nadu is the 4th largest software exporter from India. IT exports from the state account for more than 10% of the country's total IT exports.

The state has the largest telecom bandwidth and highest teledensity in India of 14.8 tbps. Chennai, the capital of Tamil Nadu, has about 1,780 IT units and employs more than 400,000 professionals. Tamil Nadu had 16 operational SEZs for IT/ITeS sector as of July 2016. The state government offers various training and capital subsidies to promote investments in the sector.

Focus sectors Tamil Nadu


Tamil Nadu is ranked 1st in both domestic and foreign tourist arrivals in consecutively during 2014-2016. Tourism sector grew at a CAGR of 19.7% between 2011 and 2016 in terms of tourist arrivals.

Tamil Nadu is also one of the leading medical tourism and wellness tourism destinations in India. The state holds the distinction of being home to 5 UNESCO Heritage sites, highest for any state in India.


Urbanisation Rate

Females/ 1000 Males

Female/Male Ratio

Male/Female Ratio


68% of Tamil Nadu's population is in the working age group of 15-59 years.

Tamil Nadu, the 6th most populated state, is home to about 6% of the country's total population. The state's population is 72.2 mn. The state has the third highest sex ratio amongst all states in India.

Industrial Land Bank Portal

GIS - based map displaying available infrastructure for setting up business operations in the state.

Data On Map


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