Home to the largest number of factories in India, Tamil Nadu has a diversified manufacturing sector and features among the leaders in several industries like automobiles and auto components, electronics, engineering, pharmaceuticals, and several other sectors. Chennai, its capital, is nicknamed as “Detroit of southern Asia” due to the presence of major automobile manufacturing units and allied industries around the city.

The state introduced the ‘Industrial Policy 2021’ to achieve an annual growth rate of 15% in the manufacturing sector while attracting investments worth Rs. 10 lakh crore (US$ 137billion) and creating employment opportunities for 20 lakh people by 2025.The Chennai-Bengaluru Industrial Corridor (CBID), Chennai-Kanyakumari Industrial Corridor (CKID), and Tamil Nadu Defence Industrial Corridor (TNDIC) are the focus corridors for industrial investments.

The electronics and automobile industry investment has risen in Tamil Nadu by attracting major projects from industrial giants like Ashok Leyland, Hyundai, BMW, Boeing, Honeywell, Renault Nissan,Yamaha, Royal Enfield, Daimler, Foxconn, and many more. These major projects triggered a multiplier effect by attracting numerous auto and other ancillary industries around locations such as Oragadam, Tiruvallur, Sriperumbudur, Salem, Ennore, Erode, Coimbatore.

Tamil Nadu has a well-developed infrastructure with an excellent road and rail network, three major ports, 15 minor ports and eight airports across the state providing excellent connectivity. As of February 2021, the state had a total installed power generation capacity of 33 GW.