India-UAE Strengthen Defence and Trade Relations, Expanding UAE Investment in Dholera Smart City Development by 2032
Table of Contents
India and the United Arab Emirates have agreed to deepen their strategic engagement, setting a shared target of expanding bilateral trade to USD 200 billion by 2032. The announcement followed wide-ranging discussions between Prime Minister Narendra Modi and UAE President Sheikh Mohamed bin Zayed Al Nahyan during the latter’s official visit to India in January 2026.
The talks reaffirmed the strength of the India–UAE strategic partnership, with a renewed focus on defence cooperation, infrastructure development, and advanced manufacturing. As part of this broader economic collaboration, both sides agreed on UAE participation in the development of Dholera Smart City in Gujarat, positioning it as a key hub for industrial growth and long-term investment.
Defence Cooperation Anchors Strategic Engagement
Defence and security cooperation featured prominently, with both countries welcoming progress toward a strategic framework that strengthens collaboration across production, logistics, and security coordination. This approach aligns with India’s broader push to reinforce its defence industrial corridor while integrating trusted global partners.
The emphasis on defence manufacturing also reflects India and the UAE’s shared interest in building resilient industrial ecosystems connected to the global supply chain, ensuring long-term stability and strategic autonomy.
UAE Investment in Dholera Smart City Takes Shape
A major outcome of the visit was progress toward UAE investment in Dholera Smart City, a flagship infrastructure and industrial initiative in Gujarat. The Gujarat government and the UAE Ministry of Investment signed a Letter of Intent to collaborate on the development of Dholera as a future-ready economic hub.
The initiative is being implemented within Dholera SIR, positioning the region as a critical node for infrastructure development and industrial expansion. The Dholera Smart City Project is designed to support large-scale manufacturing, logistics, and urban growth under a planned development framework.
Strategic Infrastructure at the Core
The proposed partnership focuses on building essential infrastructure that supports long-term economic activity. Key focus areas include:
- Development of the Dholera International Airport to enhance global connectivity
- A greenfield Dholera Port to support trade and logistics
- Integrated urban planning under b
- Improved transport and mobility infrastructure
These components strengthen Gujarat’s role as a Gujarat Smart City model, combining industrial efficiency with planned urban development.
Connectivity and Aviation Ecosystem
Improved connectivity plays a vital role in Dholera’s development strategy. The Ahmedabad-Dholera Expressway enhances access between Ahmedabad and the Dholera region, supporting faster movement of goods and workforce mobility.
Aviation infrastructure is also a key focus, including facilities such as Aircraft MRO in India, which strengthen India’s aviation services ecosystem and support high-value industrial operations. Landmark developments like the ABCD Building in Dholera highlight the city’s readiness for institutional and industrial activity.
Industrial Growth and Advanced Manufacturing
Dholera’s infrastructure and connectivity are designed to support sustained industrial growth, particularly in high-technology manufacturing. The presence of the Tata Semiconductor fab reflects the region’s role in India’s evolving advanced manufacturing landscape.
The region’s planned industrial zones and integrated logistics support manufacturing clusters, making it suitable for large-scale investment and export-oriented industries. As infrastructure progresses, Dholera is expected to attract companies across sectors, including electronics, aerospace, and industrial services.
These developments complement broader industrial ambitions and align with India’s goal of building integrated manufacturing hubs that are globally competitive and future-oriented.
Outlook for Upcoming Projects in Dholera
The partnership signals momentum for upcoming projects in Dholera, spanning infrastructure, manufacturing, and urban development. By combining Defence cooperation, industrial planning, and global investment participation, Dholera is emerging as a strategic growth center within India’s long-term economic vision.
As India and the UAE work toward their 2032 trade target, UAE investment in Dholera Smart City represents a tangible step toward deeper economic integration, supporting sustainable development and long-term regional growth.
