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Tamil Nadu has the potential to build an INR 37,000 crore defence electronics industry by 2040, according to a roadmap presented by the Defence Research and Development Organisation (DRDO). The projection estimates the state could capture 20–25% of India's defence electronics market, supported by its manufacturing ecosystem, defence corridor and semiconductor capabilities. The roadmap also outlines an annual export opportunity of up to INR 10,000 crore through expanded electronics, aerospace and defence manufacturing.
Tamil Nadu has the potential to develop an annual defence electronics industry worth INR 37,000 crore by 2040, according to a roadmap presented by the Defence Research and Development Organisation (DRDO). The projection was shared during the CII TN Defence X Conclave 2026 in Chennai, where DRDO officials outlined the state's growing role in India's defence manufacturing ecosystem and its capacity to emerge as a major electronics production hub over the next decade.
The roadmap was presented by B.K. Das, Distinguished Scientist and Director General (Electronics and Communication Systems), DRDO. According to the presentation, Tamil Nadu's annual defence electronics production opportunity could rise from around INR 11,500 crore by 2030 to approximately INR 37,000 crore by 2040. The projection is based on the state's established strengths in electronics manufacturing, semiconductors, automotive production, aerospace engineering and precision manufacturing.
DRDO estimated that India's defence electronics market could expand to nearly INR 1.49 lakh crore by 2040, with Tamil Nadu positioned to account for between 20% and 25% of the total market. The roadmap also projected annual export opportunities of up to INR 10,000 crore if the state strengthens capabilities in high-value defence technologies and expands its manufacturing base.
Speaking at the conclave, Das said modern defence systems are increasingly driven by electronics, artificial intelligence, cyber technologies and secure communication systems rather than conventional hardware alone. He indicated that future military platforms, including electronic warfare systems, autonomous technologies, advanced sensors and network-centric capabilities, would require greater domestic expertise in electronics design and manufacturing. He also emphasised that technology sovereignty and resilient domestic supply chains would play a critical role in India's future defence preparedness.
The roadmap highlighted Tamil Nadu's existing industrial ecosystem as a key advantage. The state already hosts major automotive, electronics and aerospace manufacturing clusters, supported by skilled engineering talent and export-oriented industries. According to DRDO, these capabilities provide a strong foundation for scaling defence electronics manufacturing through closer collaboration between government agencies, research institutions and private industry.
The presentation also underscored the importance of developing indigenous technologies in areas such as secure chipsets, radar systems, electronic warfare platforms and advanced communication networks. DRDO indicated that achieving the projected industry size would require sustained investment in research and development, long-term technology partnerships and coordinated efforts across the public and private sectors.
The projections align with broader efforts to strengthen the Tamil Nadu Defence Industrial Corridor, which has been expanding testing infrastructure, manufacturing clusters and industry participation as part of India's push to increase indigenous defence production and reduce import dependence.
Source: PIB
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