India’s first telecom manufacturing zone takes shape in Rs 15,000 crore Gwalior project

New Delhi: India is dialling up its manufacturing ambitions with a major push to build telecom equipment at home. The Department of Telecommunications and the Government of Madhya Pradesh have signed a memorandum of understanding to establish the country’s first integrated Telecom Manufacturing Zone (TMZ) in Gwalior, a project aimed at strengthening domestic production, attracting investment and reducing import dependence.

The 350-acre plug-and-play industrial cluster will bring together telecom and electronics manufacturing, research and development, testing, certification and innovation under one roof. The project is expected to position Gwalior as a key manufacturing hub while supporting the Centre’s vision of making India a global telecom production powerhouse.

The Centre will fully fund Phase I of the project with an allocation of Rs 493 crore for core infrastructure. The Madhya Pradesh government has committed around 170 acres of land free of cost, including 100 acres in the SADA region and 70 acres in Gwalior IT Park, with the land package valued at nearly Rs 596 crore.

A special purpose vehicle will be created to develop and manage the zone, with the Madhya Pradesh government holding a 51 per cent stake and the Department of Telecommunications owning the remaining 49 per cent.

The state has also unveiled an extensive incentive package to attract manufacturers. Besides land at a nominal premium and lease rent, investors will receive stamp duty reimbursements, power tariff rebates, capital subsidies of up to Rs 200 crore for eligible projects, employment incentives and skill development support. Companies engaged in research and development will also benefit from reimbursements for patents, copyrights and trademarks.

The project is expected to attract around Rs 5,000 crore in investments during the first phase, with total investments projected to reach between Rs 12,000 crore and Rs 15,000 crore over time. It is expected to generate around 14,000 direct skilled jobs, including nearly 3,500 during the initial phase, along with thousands of indirect employment opportunities.

Several major industry players, including Dixon Technologies, HFCL, Tejas Networks, VVDN Technologies and Syrma SGS Technology, are expected to anchor manufacturing operations within the zone.

The TMZ will cover the entire telecom value chain, from smartphones and optical fibre to advanced semiconductor technologies and future 5G and 6G research. Dedicated research centres, common testing laboratories and certification facilities will support the development of indigenous telecom products that meet global standards.

The initiative will also work alongside key government programmes, including the India Semiconductor Mission, Electronics Components Manufacturing Scheme and Telecom Technology Development Fund, to strengthen domestic supply chains and boost exports.

Speaking at the signing ceremony, Department of Telecommunications union minister of communications and development of north eastern region Jyotiraditya M. Scindia said India’s first Telecom Manufacturing Zone would mark a significant step towards achieving the vision of Aatmanirbhar Bharat, Make in India and Digital India. He said the country must move beyond being a telecom service provider and emerge as a global telecom manufacturing hub, adding that the new zone would play a key role in building a strong indigenous ecosystem.

Government of Madhya Pradesh chief minister Mohan Yadav said the project would transform Gwalior into a national centre for telecom and electronics manufacturing, driving investment, innovation and employment while strengthening the state’s industrial capabilities.

Meanwhile, Department of Telecommunications union minister of state for communications and rural development Chandra Sekhar Pemmasani said the integrated manufacturing zone would bring together design, research, testing, manufacturing and intellectual property creation in a single ecosystem, helping India build globally competitive telecom products.

An investor roundtable held after the MoU signing drew participation from leading telecom manufacturers, who collectively committed investments worth Rs 3,500 crore and pledged to create around 14,000 jobs in the proposed zone.

With infrastructure funding, policy support and industry participation coming together, the Telecom Manufacturing Zone is expected to become a cornerstone of India’s efforts to build a globally competitive telecom manufacturing ecosystem while reinforcing the country’s ambitions of becoming a leading exporter of advanced telecom technologies.