Tamil Nadu pitches for more R&D and advanced manufacturing in the state

Talks at the World Economic Forum (WEF) annual meeting 2025 in Davos with existing automotive and electronics giants revealed new plans for major expansions, including a push to shift more supply chain components to Tamil Nadu, the state government said on Thursday. While the government did not reveal specific names, the delegation confirmed ‘several promising leads.’“An electronics giant with operations in Tamil Nadu responded positively to suggestions of integrating a broader chunk of its manufacturing base into the State’s thriving industrial ecosystem,” the government said in a statement from the TN Industries Minister TRB Rajaa’s office. “Additionally, at least two new data centre investments have been mooted, underscoring Tamil Nadu’s growing role as a digital infrastructure leader.”

Further, it said a global food processing entity is lining up an investment for their FMCG products, while a well-known superfood giant is exploring entry into Tamil Nadu. Meanwhile, two major finance players too have expressed willingness to establish Global Capability Centres (GCCs), and two pharma companies are looking to bolster both their GCC presence and are also considering manufacturing plants in the state, the statement added.

At Davos, team Tamil Nadu pitched the state as an emerging destination for research, development and advanced manufacturing in over 50 intensive meetings and engagements. Rajaa highlighted a new ambition to move beyond traditional service and manufacturing based operations towards home-grown innovation and global advanced manufacturing leadership.

“Our goal is to see that world-class innovations get their start in our State, scaling up from here to global markets. It is a part of our broader agenda to start designing and developing products in Tamil Nadu and not just manufacturing them,” Rajaa said as part of a panel on supply chain diversification along with economist Dr. Raghuram Rajan.

The state said that new and existing industries alike expressed enthusiasm, with long-established players looking to expand and enhance R&D efforts, and newcomers showing keen interest in setting up fresh operations.

Further, in a series of closed-door discussions, the TN delegation said Tamil Nadu is preparing an AI-ready workforce through both government-led programmes and partnerships with leading technology organisations. It said the Naan Mudhalvan initiative, in
particular, drew strong interest from companies seeking to collaborate on workforce upskilling.

The State also emphasised its commitment to wider socio-cultural development, with a meeting involving Manchester United exploring the prospect of bringing global standards of football training to Tamil Nadu, especially for women.

“What we are witnessing is a direct outcome of the State’s robust human capital, our forward-thinking policies, and the readiness of Tamil Nadu to accommodate next-generation industries,” Industries Secretary Arun Roy said. “From food processing and agro-forest ventures to advanced electronics and pharma GCC expansions, we see a wide range of sectors recognising Tamil Nadu’s potential to foster and sustain cutting-edge R&D.”