Tamil Nadu has the potential to emerge as a major defence electronics manufacturing hub over the next decade, with the state’s annual production opportunity projected to more than triple from ₹11,500 crore in 2030 to ₹37,000 crore by 2040, according to BK Das, Distinguished Scientist and Director General (Electronics and Communication Systems), DRDO.The growth is expected to be driven by the rising share of electronics in India’s overall defence production, which is projected to increase from 35% in 2030 to 45% by 2040, significantly expanding the addressable market.Tamil Nadu is targeting to increase its share of India’s defence electronics production from 15% in 2030 to 25% by 2040, supported by the Tamil Nadu Defence Industrial Corridor and favourable national policy initiatives.“Six high-priority product segments have been identified, each with a 25% Tamil Nadu target share of the 2040 Indian market. The combined annual production target across all segments is ₹34,500-37,000 crore by 2040,” he said while addressing the CII TN Defence X Conclave 2026 on Tuesday.Instead of exporting complete weapon platforms, Tamil Nadu could focus on electronic subsystems such as radar modules, electronic warfare equipment, mission computers, satellite payloads, avionics and secure communication systems.Potential export markets include ASEAN countries, the Middle East, Africa, South Asia, and Latin America. By 2040, exports could reach ₹8,000-10,000 crore annually, representing roughly one-fourth of the state’s defence electronics production.India’s defence electronics market is projected to expand from ₹77,000 crore in 2030 to ₹1.08 lakh crore in 2035 and ₹1.49 lakh crore by 2040. Correspondingly, Tamil Nadu’s production opportunity is expected to rise from ₹11,500 crore in 2030 to ₹21,500 crore in 2035, then to ₹37,000 crore by 2040.Tamil Nadu’s production opportunity is expected to grow faster than the national market as the state captures a larger share of defence electronics manufacturing.Das said Tamil Nadu already possesses the ingredients required to build a defence electronics hub. The state hosts one of India’s largest electronics manufacturing ecosystems, alongside the automobile, aerospace, and precision engineering industries, supported by institutions such as IIT Madras, NIT Tiruchirappalli, Anna University, and numerous engineering colleges.The state is also expected to benefit from the presence of public-sector defence organisations, DRDO laboratories, HAL, BEL and an extensive MSME supplier base.
