Chennai, Mar 11th: With a diversified economic base, robust infrastructure and progressive policies, Tamil Nadu has positioned itself as a leader in development and inclusive growth. This is clearly reflected in the state achieving a real growth rate of 11.2% in 2024-25, the highest among major states, according to a recent economic survey by the Tamil Nadu government.
Tamil Nadu benefits from significant productive capacity and efficiency advantages along with high levels of human capital, reflected in literacy, technical education and skill development, ensuring a productive workforce capable of supporting both manufacturing and services, the survey added.
Few places illustrate that story better than Sriperumbudur. Primarily an agrarian economic area, the region got a facelift with it first entered the global manufacturing map in the late 1990s with the arrival of a Korean automobile major. Over time, the ecosystem diversified. When Samsung Electronics decided to establish its Sunguvarchatram plant in 2007, it signalled the region’s evolution from an auto hub into broader electronics manufacturing cluster.Today, Sriperumbudur and the surrounding belt host several global electronics and telecom manufacturers — including Samsung, Foxconn, Flex, Salcomp and Dell — along with a dense network of component suppliers serving domestic and export markets for mobile phones, laptops and consumer durables. The region has emerged as a major employment generator, providing jobs for over 70,000 people.
“The Sriperumbudur story reinforces a critical policy insight: manufacturing-led growth delivers its greatest impact when job creation is paired with skill development, fair wages, and long-term workforce investment. Companies like Samsung Electronics demonstrate how early, sustained industrial investments can transform regional economies – not just by creating employment, but by formalising livelihoods, raising income standards, and improving workforce productivity,” said Shailesh Khanna, Brand Lead, ManpowerGroup India.
Industrialisation in Sriperumbudur has reshaped household income patterns, skill profiles and aspirations. Young people who once migrated to cities for uncertain employment are now able to access formal-sector jobs closer to home. Ancillary industries — logistics, housing, retail, food services and training institutes — have flourished alongside anchor investors.
Industry observers note that early entrants like Hyundai and Samsung helped establish wage and welfare benchmarks that influenced the broader ecosystem. Publicly available employer review platforms such as Glassdoor and AmbitionBox indicate that established players in the region are often perceived to offer structured wage growth and formal employment benefits. Such practices contribute to workforce stability in what has become one of India’s most important electronics corridors.
Nearly three decades after the first wave of global manufacturers arrived, the transformation is visible in everyday life. Concrete homes have replaced thatched roofs. Educational attainment has risen. Financial savings and asset ownership have increased. A generation that once depended on agriculture and informal work now participates in formal manufacturing and global supply chains.
“Overseas investments catalyze local economic growth by enabling the development of modern industrial estates in Chennai — fostering technology transfer, creating quality jobs, and empowering local companies to scale and compete globally, ” said Sanjay Chugh, City Head & Director, Anarock Property Consultants Pvt Ltd.
This is reflected amply in the Tamil Nadu growth story which is now outperforming the national index for growth. The state is poised to become a $150-billion electronics hub by 2030 and will also become a one trillion-dollar economy by 2030-31 with a target of 12 to 14% annual nominal growth. Sriperumbudur’s journey underscores a broader lesson: industrial investment, when sustained over time, can anchor local prosperity. Electronics manufacturing has not merely created factories; it has reshaped a regional economy.
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