Telecom, Networking & Hardware

Advantage Tamil Nadu

Mobile Telephony

  • Tamil Nadu has the third highest number of mobile subscribers in India, with over 100 million subscribers
  • The State has a strong 4G network, with over 95% of the population covered
  • Tamil Nadu is also home to some of the leading telecom companies in India, such as Airtel, Vodafone Idea and Reliance Jio


  • Tamil Nadu has a well-developed fibre optic network, with over 100,000 km of fibre optic cables.
  • The State is also home to several data centrer, including those operated by Amazon Web Services, Microsoft Azure and Google Cloud Platform.
  • Tamil Nadu has a strong ecosystem of networking companies with Startups and established players.


  • Tamil Nadu is one of the major electronics exporting States in the country.
  • It is the second largest manufacturing hub in India and owns 18% of total electronics production in the country.
  • It is home to several leading hardware companies, such as Dell, HP and Lenovo.
  • The State also has a strong ecosystem of hardware Startups, which are developing innovative products and solutions.

In addition to the above strengths, Tamil Nadu also has a number of other advantages that make it a good place for Startups to thrive. They include:

Skilled workforce: The State has a large pool of skilled workers in the Telecom, Networking and Hardware sector.

Supportive government: The Tamil Nadu government has launched several initiatives to support Startups, such as the Tamil Nadu Startup and Innovation Mission (TANSIM), which is branded as StartupTN.

Favourable investment climate : It has a favourable investment climate, with a number of incentives offered to Startups.

Overall, Tamil Nadu is a good place for Startups in the Telecom, Networking and Hardware sector. The State has a strong infrastructure, a skilled workforce and a supportive government.


Sector Incharge

Ramajeyam R M J


Telecomm network Sector Map


In Tamil Nadu, the Telecom, Networking and Hardware sector has seen an impressive growth in recent years, fostering an atmosphere that is favourable for Startups to flourish and leave a mark on the market. This industry offers a wide variety of opportunities and has emerged as a centre for invention and technological development.

  • Startups are drawn to this sector for several reasons, including Tamil Nadu’s strong ecosystem. Numerous technological parks, industrial hubs and research facilities are found throughout the State, providing the foundation and assistance that aspiring entrepreneurs need. The development of talent and the promotion of innovation in the Telecom, Networking and Hardware sector have been greatly aided by institutions like the Indian Institute of Technology (IIT), Madras, and Anna University.
  • Tamil Nadu’s strategic position further increases its appeal to companies in this sector. The State has strong connectivity with important cities, ports and airports. Because of this accessibility, it is simpler for entrepreneurs to create national and international supply chains and distribution networks.
  • The key benefit for Startups in Tamil Nadu’s Telecom, Networking and Hardware industries is the availability of skilled labour. A bright workforce in engineering, computer science and related subjects is produced by the State’s outstanding educational system. For Startups, this pool of qualified professionals is essential for fostering innovation and product development.
  • In recent years, Tamil Nadu has also witnessed a surge in demand for telecommunications and networking services due to the rapid digital transformation across various industries. Startups that focus on areas such as 5G technology, IoT (Internet of Things), cybersecurity and data analytics are well positioned to capitalise on this growing market.
  • The Telecom, Networking, and Hardware sector in Tamil Nadu offers a fertile ground for Startups to flourish. With a strong ecosystem, access to talent, strategic location, government support and increasing market demand, this sector presents ample opportunities for entrepreneurs to innovate, grow and contribute to the State’s economic development.


Union Government

PLI Scheme under Atmanirbhar Bharat Abhiyan

Production Linked Incentive (PLI) Scheme worth Rs 12,195 crore for manufacturing of telecom and networking products. Incentives worth more than Rs 4,000 crore have been earmarked for the Design-Led Manufacturing Scheme of the existing PLI Scheme.

BharatNet Project

Under the BharatNet Project, 1,77,550 village panchayats have been made service ready till June 2022. Scope of BharatNet Project has been extended to all inhabited villages in the country.

Prime Minister Wi-Fi Access Network Interface (PM-WANI)

Provision of public Wi-Fi service through Public Data Offices (PDOs) spread across the country to accelerate the expansion of broadband Internet services.

Semicon India Programme

  • Schemes for setting up Semiconductor Fabs, Display Fabs, compound semiconductors, OSAT / ATMP, Design Linked Incentive (DLI).

Schemes for Promotion of Electronics Manufacturing

  • Production Linked Incentive (PLI) Schemes for
    • Large Scale Electronics Manufacturing and IT Hardware, Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS),
    • Modified Electronics Manufacturing Clusters Scheme (EMC 2.0)

State Government

Tamil Nadu Electronics Hardware Manufacturing Policy 2020: This policy encourages electronics system design and manufacturing companies to invest in the State by providing various incentives, infrastructure support and subsidies.

Electronics Manufacturing Cluster: The State Government has established Electronics Manufacturing Clusters to provide infrastructure and common facilities for electronics manufacturing companies, promoting the growth of the hardware sector. These clusters offer a conducive environment for hardware businesses, helping reduce operational cost and increase efficiency.

Tamil Nadu FibreNet Corporation (TANFINET): TANFINET aims to provide affordable high-speed broadband Internet connectivity to every household and business in Tamil Nadu. It is a major initiative in the telecom and networking sector.

Export Promotion: Tamil Nadu offers various incentives and support for hardware and electronics companies engaged in export activities. These incentives include financial assistance, export marketing support and incentives for achieving export targets.

FaMe TN provides a convenient platform for connecting MSMEs in Tamil Nadu with the respective EPC, in addition to providing handholding support through field offices in the districts. FaMe TN sponsors MSMEs for participation in international exhibitions, trade fairs and buyer-seller meets organised by the EPCs. FaMe TN undertakes knowledge sharing and training programmes in association with various EPCs for promoting exports from the MSME sector.

Guidance Tamil Nadu: The Tamil Nadu Industrial Guidance and Export Promotion Bureau, also known as Guidance Tamil Nadu, assists in promoting and facilitating investments in the State.

Single Window Clearance: The State Government provides a single window clearance system, making it easier for companies to obtain the necessary permits and approvals. This streamlined process simplifies the establishment and operation of Telecom, Networking and Hardware businesses in Tamil Nadu.

SIPCOT EMCs: Several Electronic Manufacturing Clusters in Tamil Nadu are managed by the State Industries Promotion Corporation of Tamil Nadu, a government agency under MSME department, responsible for promoting industrial development in the State. Some of the EMCs managed by SIPCOT include the Sriperumbudur Electronics Manufacturing Cluster and the Oragadam Electronics Manufacturing Cluster.

TIDCO EMCs: The Tamil Nadu Industrial Development Corporation is another key agency involved in promoting industrial development in the State. TIDCO manages various industrial clusters, including EMCs. An example is the Tiruvallur EMC.

ELCOT: Electronics Corporation of Tamil Nadu is another government organisation involved in the management and development of electronics-related initiatives, including EMCs.


In Tamil Nadu, there are about 800 Startups and 33 incubation centres in this sector.

Here are some specific examples of how Startups in Tamil Nadu are benefiting from the State’s Telecom, Networking and Hardware infrastructure:

  • Airtel X Labs: Airtel X Labs is an innovation hub set up by Airtel, one of the leading telecom companies in India. The hub is located in Chennai, Tamil Nadu, and supports startups in developing innovative telecom solutions.
  • BSNL Startup Accelerator: BSNL, the state-owned telecom company in India, has launched a startup accelerator in Chennai, Tamil Nadu. The accelerator provides startups with access to BSNL’s infrastructure and resources to help them develop and commercialize their products and services.
  • Dell Innovation Center: Dell has set up an innovation center in Chennai, Tamil Nadu. The center works with startups to develop and commercialize innovative hardware solutions.
  • HP Startup Garage: HP has set up a startup garage in Chennai, Tamil Nadu. The garage provides startups with access to HP’s infrastructure and resources to help them develop and commercialize their products and services.


  • National Policy on Electronics 2019
  • Tamil Nadu Electronics Hardware Manufacturing Policy: 2020