Investments Pour Into Tamil Nadu As EV Giants, Apple Suppliers Propel State's Economic Growth

Tamil Nadu has unveiled investment agreements totaling over USD 4.39 billion with companies, including Tata Electronics, Pegatron, and Hyundai Motors. These companies, crucial suppliers to tech giant Apple, are part of the broader strategy to shift some of Apple's production from China to India, aligning with Apple's focus on India as a key growth market.

Apple supplier Pegatron is working on establishing its second factory in India, following Tata Group's initiation of iPhone assembly in the country last year. Tata Electronics has committed to investing INR 12,080 crore in mobile phone assembly operations, as announced by the state government during the signing of the agreements.

At the event, Chief Minister MK Stalin assured investors of the Tamil Nadu government's support and expressed the state's ambition to contribute to India's overall growth. Pegatron, Apple's Taiwanese supplier, is set to inject INR 1,000 crore to ramp up production, showcasing the company's commitment to the Indian market.

These agreements, disclosed during a global investors' meeting, are anticipated to generate thousands of jobs in the state. Notably, the contracts also include a deal with JSW Energy, committing INR 12,000 crore to develop renewable energy projects, aligning with the growing global emphasis on sustainable practices.

Global EV Makers in Tamil Nadu

Automobile giant Hyundai Motors has pledged INR 6,200 crore towards various initiatives, including electric vehicle (EV) battery and car production, in line with the increasing demand for sustainable mobility solutions. Additionally, Vietnamese EV manufacturer VinFast has inked an agreement to establish its inaugural manufacturing facilities in Tamil Nadu, with a planned investment of up to USD 2 billion.

In the renewable energy sector, Tata Power has announced plans to invest INR 55,000 crore in wind and solar power generation in Tamil Nadu over the next 5-7 years, expanding its green energy portfolio. Praveer Sinha, the MD & CEO of Tata Power, revealed during the Global Investors Meet 2024 that the company aims to invest INR 70,000 crore for 10 GW of power across wind and solar over the next 5-7 years, underlining its commitment to sustainable energy initiatives in the region.

Reliance’s Green Investment

In a recent announcement, Chairman of Reliance Industries, Mukesh Ambani, revealed plans for investments in renewable energy and green hydrogen initiatives in Tamil Nadu. He said that the conglomerate would work closely with the state government to promote sustainable development.

“Reliance has proudly partnered in Tamil Nadu’s growth over the years. We have opened nearly 1,300 retail stores across the state, investing over INR 25,000 crore. Jio has invested over INR 35,000 crore in Tamil Nadu, bringing the fruits of the digital revolution to 35 million subscribers in every town and village in the state,” he said.