Oct 15 (Reuters) - Workers of Samsung Electronics'

Indian unit have decided to end a strike at its

factory in Southern India, the company said on Tuesday, without

disclosing the settlement terms.

The strike at the plant, backed by the Centre of Indian

Trade Unions (CITU), was the biggest such labour dispute in

recent years in the country and has cast a shadow over Prime

Minister Narendra Modi's drive to lure investors to set up local

manufacturing.

Samsung India said it welcomes the decision of the CITU to

call off the strike at the plant, which employs about 1,800

permanent workers and makes refrigerators, TVs and washing

machines.

The company will not take action against the workers who

participated in the strike, Samsung India said in a statement

late on Tuesday.

More than 1,000 Samsung India workers have held protests

close to the factory near the city of Chennai in Tamil Nadu

since Sept. 9, demanding higher wages and recognition of their

union.

The plant is critical to Samsung's ambitions and accounted

for roughly one-fifth of its $12 billion India sales in 2022-23.

It is one of Samsung's two factories in India.

The other one is in Uttar Pradesh state where Samsung

makes smartphones, but it has witnessed no labour unrest.

The CITU will make an official announcement on Wednesday,

union leader E. Muthukumar told Reuters.

Representatives from both the management and the striking

workers participated in the talks, the Tamil Nadu government

said in a separate statement.

The management will file a written reply to the charter of

demands filed by the workers, the state government said.

Samsung workers earn 25,000 rupees ($300) on average each

month and were demanding a raise of 36,000 rupees a month spread

over three years, according to the CITU.

Samsung has previously said the average monthly salary of

full-time manufacturing workers at the plant is nearly double

that of similar workers in the region.

(Reporting by Devika Nair in Bengaluru and Aditya Kalra;

Editing by Anil D'Silva)