CHENNAI: Tamil Nadu’s credentials as a top exporter received a resounding shot in the arm on Wednesday, with the central government think-tank, Niti Aayog, ranking it second among states and Union Territories – and the only one in the top five that has increased its share in overall exports – in its Export Preparedness Index 2024.
As per the preparedness report, Tamil Nadu scored 64.41 points, second only to Maharashtra, which had 68.01. Prime Minister Narendra Modi’s home State, Gujarat, was third with 64.02. For the exercise, Niti Aayog studied four core pillars for the EPI 2024 framework: export infrastructure, business ecosystem, policy and governance, and export performance.
Tamil Nadu accounted for 10 per cent of the exports in 2024, up from 9.2 per cent in 2023. Ranked above it are the other traditional export powerhouses, Gujarat (30.8%) and Maharashtra (15.4%). However, these states lost share when compared to the performance in the 2023 financial year.
“Tamil Nadu leverages its strong manufacturing ecosystem, excelling in consumer electronics, automotive, and textiles exports. The State’s commitment to workforce upskilling, infrastructure expansion, and policies promoting R&D and startups has positioned it as a major export hub,” the report said.
Unlike almost all states where the best-performing district is their capital, Chennai was not the crown jewel for Tamil Nadu when it comes to exports. Among the districts, Kancheepuram came second in the country with $ 20,388 million, beating the likes of Mumbai, accounting for 4 per cent of the country’s exports. The temple town neighbouring Chennai is second only to Jamnagar in Gujarat, which houses the largest refinery in the world owned by Reliance Industries.
What helped boost Kancheepuram’s standing – and as a result, that of Tamil Nadu – was the massive investment in the electronics sector, particularly mobile phones. The report highlighted how Tamil Nadu was in fourth position in electronics exports with $1.86 billion till FY22. But by FY24, it grew by a whopping 414% in just three years to reach $9.56 billion to reach the top spot.
“A blend of skilled labour, matured infrastructure and forward-thinking policies ensures Tamil Nadu’s place among India’s leading export contributors,” the report said.
The report also flagged its weaknesses, noting how traditional export sectors like agriculture, artisanal textiles, and goldsmithing are in steady decline. In goldsmithing hubs such as Coimbatore and Madurai, orders have fallen by nearly 70 per cent during peak season due to high gold prices and competition from machine-made jewellery. Weavers are also facing a huge crisis, with many shifting to better-paying MNREGA jobs, it added.
“These challenges are compounded by Customs inefficiencies in tier-2 export hubs, causing delays and higher costs that erode small exporters’ competitiveness. Limited global branding of niche products from temple jewellery to specialised engineering goods further restricts their ability to capture premium international markets,” it warned.