The Department of Telecommunications (DoT) and the Government of Madhya Pradesh signed a memorandum of understanding (MoU) on Thursday, July 30, 2026 at Vigyan Bhawan in New Delhi to establish India's first Telecom Manufacturing Zone (TMZ) in Gwalior. According to reports from Business Standard, the agreement was signed in the presence of Madhya Pradesh Chief Minister Mohan Yadav, Union Minister for Communications Jyotiraditya Scindia, and Union Minister of State for Communications P.S. Chandrasekharan. Communications and Development of North Eastern Region Minister Jyotiraditya Scindia emphasized that 'India has to move from a services nation to a product nation. Building a telecom manufacturing ecosystem is not merely an economic necessity but a strategic national imperative. Digital sovereignty only comes true when we have manufacturing sovereignty'. The minister stated that 'You have all heard about Special Economic Zones (SEZs), but now the world will hear about a Telecom Manufacturing Zone,' adding that the initiative would bring together governments and industry to accelerate India's telecom manufacturing ambitions.
Over 14 companies have committed a total investment of ₹3,500 crore for India's first telecom manufacturing zone in Gwalior, as announced by the Centre on Thursday. According to Mint, electronics and telecom gear makers such as HFCL Ltd, Dixon Technologies (India) Ltd, VVDN Technologies, Lava Mobile, and Optimus Electronics have made these commitments. Dixon Technologies is tentatively looking to invest around ₹200 crore with expected employment of 1,200 people, focusing on telecom consumer premise equipment (CPE) products, network equipment, and telecom components. HFCL announced a ₹700-crore investment for phase 1, setting up an optical connectivity solutions factory that will employ at least 750 people with 80% manufacturing for exports. VVDN Technologies has committed ₹500 crore and expects to generate 5,000 jobs, establishing a state-of-the-art R&D and design facility for 5G, 6G and satellite communications. Other significant commitments include Syrma SGS with ₹250 crore investment and Sparsh CCTV with ₹300 crore investment.
The government has announced total grant-in-aid of ₹493 crore for the two industrial parks spanning 170 acres. Of this, ₹270 crore has been earmarked as capital outlay for testing facilities and the laboratory ecosystem. An integrated telecom testing and certification ecosystem has been proposed, with two laboratory centres covering eight testing domains. The Centre also plans to establish internal infrastructure of the manufacturing zone followed by technology centre and costs on marketing to attract companies. The Madhya Pradesh government has allotted 170 acre land initially with local incentives, including providing 50% capital support, maximum ₹200 crore to the companies who set up production facilities. Employment assistance of ₹5,000 per month for new employees and training support of ₹13,000 each for the first 4,000 new employees were announced, along with 100% reimbursement of stamp duty and concessions on water and power supply. The state government will offer power tariff rebate of ₹2 per unit to companies, followed by subsidized water charges.
The manufacturing zone, which is being set up as a joint venture between the Centre and the Madhya Pradesh government, is being positioned as a centralized hub to design, manufacture, test, and export telecommunications equipment locally. According to Business Standard, the zone, spread over approximately 170.5 acres, will be based on a plug-and-play model, offering the entire value chain from design, manufacturing, testing, certification, to export within a single campus. The project will produce 5G, 6G, optical fiber, semiconductors, networking equipment, and other electronic hardware. The project will be developed through a Special Purpose Vehicle, with 51% stake held by the Madhya Pradesh government and 49% by the Department of Telecommunications. MPIDC will act as the master developer. The zone will also house testing laboratories for 5G core networks, satellite communication, optical fiber, SIM, PON, routers, and a cyber security lab. Chief Minister Yadav stated that the upcoming Global Telecom Manufacturing Hub in Gwalior would make Madhya Pradesh a national and global center for telecom equipment production.
Union Minister Jyotiraditya Scindia declared that 'India's goal is not just to be a consumer of telecom equipment but to achieve global leadership in their design, development, and manufacturing'. According to Business Standard, the minister added that **'The Gwalior Telecom Manufacturing Zone will realize the vision of
