Electronics and Information Technology (IT) industry in India is one of the fastest growing sectors of the Indian Economy with a growth of 22% in production and 26% in exports during 2002-03. The industry achieved a Compound Annual Growth Rate (CAGR) of 25% in production and 41% in exports during the last 5 years. Consumer electronics is the largest sector of Electronics Hardware industry and accounts for almost 35 per cent of the total electronics hardware production.

Some of the major items manufactured in India are computers, communication equipment, broadcasting and strategic electronics, television sets, microwave ovens, and washing machines.

Electronics is an industry which is getting priority attention in recent years with a turnover of US $ 270 million. Apart from computers and associated hardware, there has been a boom in consumer electronics giving rise to a wide range of consumer products. Software development is currently a US $ 100 million industry in Tamilnadu with several foreign companies entering into collaboration and joint ventures. Today, Indian software professionals are considered among the world's best.

Chennai (Tamil Nadu), is fast emerging as the second Silicon Valley. Chennai has the largest number of Software professionals in India. It has abundant highly skilled professionals as computer science & software development have been introduced as part of curriculum in almost every technical educational institution in Tamilnadu. Chennai has the largest mainframe computing capacity. Again, Chennai is the largest exporter computer hard-discs. Chennai is the center for development of advanced multimedia applications & communications software. A number of major companies like Dun & Bradstreet, TCS, Pentafour, Ramco, Singapore Airlines, Citibank,etc. have software development facilities at Chennai. New projects are currently being set by Alcatel, Infosys, etc.

Currently, Govt of Tamilnadu is in the process of setting Information Technology Parks with state-of the art facilities at 3 locations in Chennai. Besides, a similar park is being set up at Coimbatore. Consumer electronic is another promising area offering attractive investment avenues to investors. A number of MNCs like LG, Daewoo, Samsung, Matsushita etc. are in the process of setting up consumer electronics projects in Tamilnadu.

Kerala is coming up with the first of its kind, self-contained Electronics Technology Park, Technopark at Trivandrum, is fast attracting electronic manufacturers worldwide - especially with a 30% annual growth in internal demand for electronic goods.