Bhopal: Madhya Pradesh’s proposed Telecom Manufacturing Zone (TMZ) in Gwalior has attracted investment commitments worth ₹5,500–6,000 crore from 31 companies, including a startup, Union Communications Minister Jyotiraditya Scindia announced on Friday. The project aims to strengthen domestic telecom manufacturing and generate more than 18,000 employment opportunities.
The Centre and the state government plan to hold the project’s bhoomipujan before the end of October 2026. The zone will bring manufacturing, research, development, testing and certification facilities together at one location.
170 Acres Identified for First Phase
The government has identified 170 acres for the first phase and is considering another 400 acres for allotment to companies. The Centre has committed ₹493 crore in financial assistance for first-phase infrastructure, while ₹193 crore has been earmarked for common testing and certification facilities.
The Department of Telecommunications (DoT) and the Madhya Pradesh government signed a memorandum of understanding in July 2026. They have also established a special purpose vehicle to oversee implementation. The state is offering incentives to attract manufacturers.
The plug-and-play industrial cluster will provide shared infrastructure, helping companies establish manufacturing facilities and test telecom equipment before commercial deployment. These facilities could particularly benefit startups and smaller manufacturers.
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Investment Expected to Generate Jobs
According to the DoT, the project could create over 18,000 jobs across manufacturing, engineering, research, testing, logistics and supporting services. It could also benefit local suppliers, transport operators and other businesses linked to industrial development.
The actual employment impact will depend on how quickly companies turn their investment commitments into operational facilities.
India’s Telecom Manufacturing Sector Expands
Scindia said India’s mobile phone production had grown from around ₹90,000 crore to ₹6.27 lakh crore over the past 12 years. Mobile phone exports have reached approximately $28 billion, while the number of mobile phone manufacturers has increased from two to around 300.
The government aims to extend this growth to telecom equipment such as routers, antennas, optical fibre and network components. The Gwalior zone is expected to support domestic value addition, reduce dependence on imported equipment and encourage exports, including products linked to 5G and 6G technologies.
The Production Linked Incentive (PLI) scheme for telecom and networking products has reportedly generated around ₹1.1 lakh crore in incremental sales, ₹25,000 crore in incremental exports and 30,000 additional jobs. The Gwalior project will complement these efforts by providing shared infrastructure for manufacturers.
Indigenous 4G and 6G Development
Scindia highlighted India’s indigenous 4G technology stack, deployed across approximately 110,000 towers. He also said India had around 550 million 5G users and was targeting one billion by 2030.
The country is preparing for 5G standalone networks, which can support advanced enterprise applications, while the Bharat 6G Alliance brings together industry and academic institutions to help India contribute to future international telecom standards.
The proposed Gwalior zone could connect manufacturing with research and innovation, supporting India’s ambition to become a global telecom technology producer. Its long-term success will depend on timely infrastructure development, operational factories and the conversion of investment commitments into production and exports.
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