Tamil Nadu defence electronics output projected to reach ₹37,000 crore by 2040

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.

This projection was shared in Chennai on Tuesday by BK Das, a Distinguished Scientist and the Director General of Electronics and Communication Systems at the Defence Research and Development Organisation (DRDO). He was speaking at the CII TN Defence X Conclave 2026.

According to Das, the anticipated growth will be driven by the rising share of electronics in India’s overall defence production. This share is projected to increase from 35% in 2030 to 45% by 2040, which will significantly expand the addressable market for manufacturers across the country.

Tamil Nadu is currently targeting to increase its share of India’s defence electronics production from 15% in 2030 to 25% by 2040. This growth is expected to be supported by the Tamil Nadu Defence Industrial Corridor alongside various national policy initiatives.

To meet these goals, six high-priority product segments have been identified. Each of these segments has a target of securing a 25% share of the Indian market by the year 2040. Das noted that the combined annual production target across all of these segments is projected to be between ₹34,500 crore and ₹37,000 crore by 2040.

Rather than exporting complete weapon platforms, the state is expected to focus its manufacturing efforts on electronic subsystems. These high-value components include radar modules, electronic warfare equipment, mission computers, satellite payloads, avionics, and secure communication systems.

The event was organised by the Confederation of Indian Industry (CII) to highlight the state's industrial opportunities in the defence sector.