The Centre is eyeing investments of Rs 10,000–12,000 crore in the upcoming Telecom Manufacturing Zone (TMZ) in Madhya Pradesh‘s Gwalior over two phases, positioning it as a major hub for telecom and electronics manufacturing in India.

Announcing the project, Union Minister Jyotiraditya Scindia said the zone is expected to significantly exceed initial investment and employment projections, with strong early interest from industry players.

MoU signed for 170-acre telecom hub

The Department of Telecommunications (DoT) and the Madhya Pradesh government have signed a memorandum of understanding to set up the Telecom Manufacturing Zone on 170 acres in Gwalior. “We expect total investment in the Telecom Manufacturing Zone will be in the range of Rs 10,000–Rs 12,000 crore by the end of the second phase,” Scindia said, underlining the scale of the project and its role in India’s telecom manufacturing roadmap.

The TMZ will be developed and operated through a special purpose vehicle, with the Madhya Pradesh government holding a 51 per cent stake and the Centre holding the remaining 49 per cent. This joint ownership model is intended to align state and central priorities and ensure coordinated policy, infrastructure and incentive support for investors.

First-phase targets beaten on day one

For the first phase, the government had set a target of Rs 2,000 crore in investments and around 4,500 jobs. However, those numbers were surpassed almost immediately. At a roundtable held right after the MoU signing, investors committed roughly Rs 3,500 crore and promised employment opportunities for about 14,500 people—well over three times the original job estimate.

In all, 14 companies have so far announced investments in the zone. HFCL has committed Rs 700 crore, VVDN Rs 500 crore, Sparsh CCTV Rs 300 crore, Syrma SGS Rs 250 crore, Dixon Technologies Rs 200 crore, Paramount Cable Rs 200 crore, Optiemus Infracom Rs 150 crore and Lava International Group Rs 130 crore, among others.

This early line-up signals strong confidence in Gwalior’s potential to emerge as a specialised telecom manufacturing cluster.

ALSO READ

Building a self-reliant telecom manufacturing ecosystem

Madhya Pradesh Chief Minister Mohan Yadav said the TMZ scheme is fully aligned with the government’s vision of self-reliance. By creating a dedicated zone for telecom equipment and component manufacturing, the project aims to reduce import dependence and anchor high-value manufacturing within India.

Minister of State (MoS) for Communications Pemmasani Chandrasekar framed the initiative against the backdrop of India’s export performance and import bill in electronics. He noted that while India has grown multifold in mobile phone and electronics exports, only about 20 per cent of the components used in these products are made domestically.

“80 per cent (components) are still being imported, which is worth almost USD 116 billion. We want to design in India. We hope this zone will create an ecosystem for component manufacturers, startups, R&D, testing labs, logistics, and skilled employment, and hopefully with our ambition to design very clearly in India, manufacture in India, but export to the rest of the world,” he said.

This vision situates the Gwalior TMZ as more than just an industrial park. It is meant to host the entire value chain—from design and R&D to manufacturing, testing, certification and exports—covering 5G/6G equipment, optical fibre, networking hardware, semiconductor-linked products and allied electronic systems.

Centre, state and industry as partners

Telecom Secretary Amit Agrawal highlighted the strategic intent behind the initiative, saying that by encouraging domestic production, promoting innovation and building resilient supply chains, the TMZ will help India evolve from being one of the world’s largest telecom markets into a centre for telecom design, development and manufacturing.

“We will bring our sectoral knowledge, policy experience and institutional support to help create an enabling environment for investors and ensure successful outcomes. This zone is also an excellent example of cooperative federalism demonstrating how the union and state governments can work together in partnership with industry to enable innovation and enterprise for sustainable economic growth,” he said.

ALSO READ

As part of this cooperative framework, Madhya Pradesh has offered an additional 500 acres for expansion beyond the initial 170-acre footprint, giving the zone room to grow as more companies join and existing units scale up. DoT Deputy Director General AK Bhardwaj said this extra land will support the long-term expansion plans of units investing in the TMZ.

From investment target to telecom manufacturing hub

The Rs 10,000–12,000 crore investment target for Gwalior’s Telecom Manufacturing Zone marks a significant escalation from the initial Rs 2,000 crore first-phase goal, reflecting both government ambition and early industry traction. With 14 firms already committing Rs 3,500 crore and around 14,500 jobs in the very first round, the zone is off to a strong start.

If the government’s projections materialise, Gwalior could emerge as a major telecom manufacturing hub that not only substitutes imports but also positions India as a competitive exporter of telecom and electronics hardware.

The TMZ’s design—as a joint Centre-state initiative, backed by sector-specific incentives, infrastructure and policy support—suggests that the Rs 10,000–12,000 crore investment is being treated not just as a numerical target, but as the anchor for a long-term, ecosystem-building strategy in one of India’s most critical technology sectors.