MC EXCLUSIVE Tamil Nadu aims to be Apple’s preferred hub, SpaceX challenger and India’s R&D powerhouse: TRB Rajaa

Tamil Nadu’s industries, investment promotion and commerce minister TRB Rajaa.

Tamil Nadu is cementing its position as the top destination for Apple suppliers, while also nurturing space-tech startups that can rival SpaceX in reusable rockets, the state's industries minister TRB Rajaa has said.

In an exclusive interview to Moneycontrol, Rajaa outlined the state's push to become an innovation-led economy through deeper R&D investment, a product-first policy for startups, and strategic support for high-tech sectors like AI, defence, and semiconductors. Driven by its skilled workforce, strategic push and policy continuity, Tamil Nadu has become the preferred destination for global firms looking to diversify their supply chains away from China, the minister said. Edited excerpts of the interview:

Tamil Nadu dominates electronics manufacturing. What kind of investment are you seeing?

We lead with 41 percent of India’s electronics exports and this growth is inclusive. Our electronics sector is powered largely by women, proof that our DEI (diversity, equity and inclusion) approach is working.

We're not resting on our laurels. I just returned from Japan and more hardcore component makers are coming in. Tamil Nadu isn’t just assembling products; we're localising the entire value chain.
For instance, Murata, a global leader in capacitors, is now manufacturing in Tamil Nadu. During a visit to Delta Electronics in Hosur, a manager excitedly showed me a tiny capacitor being made there. That’s the story of Tamil Nadu, focusing on small but critical components and building a fully localised ecosystem.

There were concerns around labour unrest at Samsung. What’s your take?

There was one brief incident but it was resolved through dialogue. Samsung has since invested Rs 1,000 crore more in the state and continues expanding. That’s a vote of confidence.
We ensured all stakeholders were heard and arrived at a lasting solution. This reflects Tamil Nadu’s professional and balanced approach to labour-management issues.

Are more Apple suppliers approaching Tamil Nadu?

When I took over in 2023, my first priority was to bring more of the Apple ecosystem to Tamil Nadu and we succeeded over the year. Now, it’s the other way around: more Apple suppliers are approaching us because the ‘Brand Tamil Nadu’ has gone global. They know that such capabilities exist in this state...

This is a state which is unique, with superior quality infrastructure, superior quality of talent and much superior governance, where both the administrator and the political unit will understand the value of your product and not just the company and your investment. We don't gauge our investors by the quantum of investment but the quality. Even a Rs 100-crore investment into a single component, which will excite the local ecosystem, is more important to me than a Rs 10,000 crore generic investment. That’s what brings real value.

While Tamil Nadu leads in electronics, why hasn't semiconductor manufacturing picked up? Are you still pursuing fabs or OSATs (outsourced semiconductor assemblies and test)?

All major semiconductor-related firms first came to Tamil Nadu. They saw the strength of our ecosystem but were later redirected elsewhere for subsidies. That’s disappointing. The truth is: the infrastructure and talent they need are here, not where they’ve been sent.

We’re not against other states progressing but India must play to its strengths. Tamil Nadu and Maharashtra are industrial engines. We have the right mix of services and manufacturing and we deserve our fair share of strategic projects like fabs.

That said, Tamil Nadu continues to attract high-value investment and we’re confident more will come because companies recognise our long-term potential.

Have companies like Foxconn and Apple suppliers committed to expanding further?

Absolutely. Every company that has set up in Tamil Nadu is expanding. They know the advantages we offer: world-class infrastructure, talent and governance.

I say this often: we don’t compete with Indian states. We compete with countries. That’s how high our standards are.

Today, "China Plus One" has become “Chennai Plus Plus.” Every major shift out of China first lands in Tamil Nadu.

How are you attracting more companies and are there new industries you're targeting?

Tamil Nadu’s strength comes from our century-long focus on education. We have the intellectual capital needed to attract world-class industries.

What sets us apart is our proactive approach. Before industries arrive, we ensure the right talent is available through strong academia-industry collaboration. Our education system constantly evolves to meet global industrial needs.

Last year, our chief minister (MK Stalin) visited the US and partnered with Google and Microsoft to roll out AI education to 2 million students. We're preparing our future workforce now, not later.

Policy continuity also matters. No government in Tamil Nadu, regardless of party, will act against industry interests. The public understands that industries bring jobs and growth and they support this direction.

Our “Dravidian model” is built on inclusive and distributed growth. While other states have one or two industrial hubs, in Tamil Nadu, you’ll find development across the map — Chennai, Coimbatore, Hosur, Salem, Tirunelveli, Trichy, Madurai, and beyond.

We’re building industrial corridors, SIPCOT parks, ports, and IT infrastructure everywhere — from Nagapattinam to Puthupatti, which is now emerging as a hydrogen and auto hub.

In short, Tamil Nadu has always been future-ready. Now we’re also future-proofing through education, policy, and infrastructure.

What’s happening under the Tamil Nadu Space Industrial Policy 2025?

Space is a personal passion. Our chief minister supported us in launching Tamil Nadu’s first space policy. We're not limiting it to just Kulasekarapattinam or Thoothukudi. We’re developing a hub-and-spoke model across the state.

IIT-Madras is already 3D printing rocket engines. We’re building a rocket fuel park, and encouraging space startups. Some of these startups are already developing reusable rockets cheaper than SpaceX. I truly believe Tamil Nadu can challenge Elon Musk in this space.

Electronics gets a lot of attention. What’s happening in sectors such as automotive, space and defence?

We are focusing on the aero and defence sectors and are hosting one of India’s largest aerospace and defence B2B conferences in Chennai this October. This will be an annual event moving forward.
We’re also focusing on the blue economy. With a vast coastline, we’re expanding into shipbuilding and seafood processing. Across sectors — automotive, EVs, defence, AI, (and) deep tech — we’re seeing momentum.

What role do global capability centres (GCCs) play in Tamil Nadu’s strategy?

Tamil Nadu is the original GCC capital of India. We’re also the SaaS and fintech capital, providing high-end jobs and innovation.

Because we’re strong in manufacturing, many global firms are now setting up R&D and GCCs close to their factories, for better integration and faster problem-solving.

Last year, Chennai saw the highest office space absorption for GCCs in India. We're now expanding to Tier 2 cities like Trichy and Madurai with new TIDEL and Neo-TIDEL hubs to meet growing demand.

Which countries are showing interest in Tamil Nadu?

Tamil Nadu has India’s largest Japanese and Korean expat populations and now we’re seeing a surge in Vietnamese investors. Germans and French companies have long had a strong presence. The US is a major partner as well.

Every country with a serious India strategy sees Tamil Nadu as a top priority. Our industrial “rainbow” reflects this diversity.

Any big names ready to invest further?

There’s strong interest from Europe, especially Germany, and the US, too. After my Japan visit, I can say with confidence that big names are on the way.

Many are lesser known to the public but well known within the industrial ecosystem like Murata. These companies will significantly localise supply chains and reduce future disruption.
We’re not just chasing large headline investments. We’re focusing on building the full supply chain because once that’s in place, large investors follow.

What’s happening under the Tamil Nadu Space Industrial Policy 2025?

Space is a passion project for me. When I proposed it to the chief minister, he was fully on board. Initially, we planned it for Thoothukudi but he asked why we were limiting ourselves.
So now we’re planning a hub-and-spoke model. Thoothukudi will be the hub but we’ll have facilities across Tamil Nadu.

I believe Tamil Nadu can soon challenge even SpaceX — with reusable rockets at a fraction of the cost. I’ve seen these startups — the work is incredible. India will be proud.

Is the government actively R&D and product innovation?

Yes, this is critical for our future and for India’s. We’ve launched ‘Product Nation TN’ because we believe India should become a product nation. Tamil Nadu can manufacture any part listed in the HSN (harmonized system of nomenclature) code. So why shouldn’t we design our own products?

We need more R&D funding, especially for startups. That’s what China did. It funded its talent, sent researchers abroad and brought them back. We should do the same. Today, Tamil Nadu files the most patents in India, over 10,000 and counting. We’re pushing for bold, original R&D, not reverse engineering, but true innovation with a 10-15 year roadmap.

And I’m confident we can reverse brain drain. Our top researchers abroad want to return — they just need support. We can create the next innovation wave right here.

How are you supporting budding entrepreneurs?

Our Skill Development Mission and Startup TN are working hand-in-hand. We fund startups, provide accelerators, and connect them globally. We've taken our startups to Europe and the UK to meet investors and build networks.

We want our young innovators to file patents, scale up, and build the next unicorn, right here in Tamil Nadu.