The UAE to help develop Dholera region in India’s Gujarat
Plan to build international airport, smart urban township, railway connectivity and energy infrastructure
– PUBLISHED: Tue 17 Feb 2026, 9:17 PM UPDATED: Tue 17 Feb 2026, 11:39 PM
Question: I believe a letter of intent has been signed by the UAE Ministry of Investment with the Gujarat Government for the development of the Dholera region.As my family hails from this area, I am delighted to hear about this development.Can you please give more details?
ANSWER: The Dholera letter of intent will facilitate investment by the UAE Government in strategic infrastructure projects which will include an international airport, smart urban township, railway connectivity and energy infrastructure.In addition to the airport, a pilot training school and maintenance, repair and overhaul facilities will also be set up.A Greenfield seaport will be developed in due course.
Apart from the development of the Dholera region, the UAE President and the Indian Prime Minister agreed to double bilateral trade to US $ 200 billion by 2032 and concluded a pact on food security.It was also agreed to fast track MSME connectivity through initiatives such as Bharat Mart, the Virtual Trade Corridor, and Bharat-Africa Setu to expand market access across West Asia, Africa and Eurasia.Both Governments agreed to develop partnerships in advanced nuclear technologies, including large reactors and Small Modular Reactors and agreed to co-operate in nuclear power plant operations, maintenance and nuclear safety.The two countries decided to strengthen collaboration in science, technology and innovation, including artificial intelligence and emerging technologies.
Question: With US tariffs being reduced to 18% and a trade deal on the horizon, will India be able to accelerate its export momentum?
ANSWER: Export momentum is bound to increase with US tariffs being reduced substantially.
Last month India launched the Market Access Support (MAS) intervention with an outlay of Rs.45.3 billion with the object of easing trade finance constraints, expanding global reach, and supporting micro, small and medium enterprises.The Government is also working on creating an index to evaluate exporters’ performance and tracking growth in exports over a five-year period.The MAS will focus on first-time exporters as well as companies from priority sectors and will provide financial support to enable these entities to participate in activities such as international fairs and exhibitions.The main purpose of this initiative is to enhance India’s presence in global markets and improve buyer connect.
Exporters entering new markets or promoting new products will receive a specific amount as an incentive which will partially reimburse exporters the cost of compliances, such as tests and certifications.
The total budgetary outlay of the Indian Government for export promotion is about Rs.140 billion which will be used to cover 60% of the costs incurred by exporters that are in the priority sectors or are small and micro enterprises.All such units will be encouraged to participate in market access events through the MAS intervention during the next financial year, for which a calendar of events taking place around the world has been prepared.Special emphasis is provided to cover new geographies with a view to encourage export diversification.
It is therefore expected that India’s exports will reach U.S.$ 950 billion in 2026-27 driven by free trade agreements.The India-U.K.Comprehensive Economic and Trade Agreement is expected to come into force this year which will give a significant boost to textile and apparel exports.
The negotiations on the trade deal with the European Union have been recently concluded which will push electronics and automobile exports to new heights.
Question: At the WEF Davos Summit which was held last month, some mega deals were signed by the Maharashtra State Government.Are they likely to take off in the near future?
ANSWER: Several deals have been negotiated and signed at the World Economic Forum Summit by the Chief Minister of the Maharashtra State.These agreements will bring foreign direct investment in sectors such as artificial intelligence, data centres, quantum processing, renewable energy, green steel, ship building and digital infrastructure.The State Government also signed a deal with a U.S.based company to set up the world’s first AI Global Capability Centre Hub in the Bandra-Kurla Complex of Mumbai.This hub will allow foreign companies to deploy AI-driven operating models across front, middle and back office functions and foster a robust ecosystem of AI solution partners and enterprise adopters.
Maharashtra will also be the first in the country to set up small modular reactors for generating electricity for commercial use.
The power so generated will fulfil the demand of data centres which are to come up at Innovation City near the Navi Mumbai International Airport.
This city will offer plug and play facilities to researchers and innovators to start operations.The Tata Group is committed to invest U.S.$ 11 billion in developing the ecosystem for this purpose.
It is expected that the deal signed in Davos will have the potential to create 3 million jobs in the technology sector.
H.P.Ranina is a practising lawyer, specialising in corporate and fiscal laws of India.