Gujarat Budget 2026—27 strengthens Dholera’s position as a critical industrial hub
The Gujarat Government’s Budget for 2026-27 signals steady progress in Dholera’s evolution from a planned project into a competitive industrial and urban centre. The allocations announced by Finance Minister Kanubhai Desai highlight the state’s continued focus on infrastructure development to support growth in advanced manufacturing, semiconductors and clean energy.
A key beneficiary of this approach is the Dholera Special Investment Region (SIR), which is fast emerging as one of the most strategically important industrial destinations in the country. The Budget’s focus on logistics, trunk infrastructure, roads and water security underlines the understanding that sustainable industrial growth must be supported by robust physical and social infrastructure.
The allocation of Rs 610 crore under the Viksit Gujarat Fund for Phase I logistics and trunk infrastructure at Dholera is a notable step. Projects such as the Dholera airport, modern road networks, underground power cabling, smart ICT systems, and advanced water and wastewater treatment facilities are essential for enabling large-scale industrial activity and supporting the development of a globally benchmarked smart city. These investments will significantly enhance Dholera’s readiness for high-technology industries and skilled talent.
Water availability remains a critical requirement for future industries, particularly electronics and semiconductor manufacturing. The allocation for a 100 MLD pipeline from Bhaskarpura village lake in Surendranagar district, along with plans for a Rs 650 crore bulk pipeline network, addresses this requirement directly. Reliable and uninterrupted water supply will play an important role in supporting both industrial operations and the region’s growing population.
The focus on infrastructure is also expected to strengthen Dholera’s position as a semiconductor hub. Along with the emerging cluster in Sanand, Dholera is helping place Gujarat on the global semiconductor manufacturing map. Anchor investments, including the semiconductor fabrication facility being developed by the Tata Group in partnership with PSMC, are already contributing to the development of an integrated industrial ecosystem.
Connectivity remains one of Dholera’s key advantages. The Ahmedabad-Dholera Expressway, the upcoming international airport, and access to the Dedicated Freight Corridor together provide strong domestic and international linkages. These projects are expected to reduce logistics costs and improve efficiency for export-oriented industries.
As a developer actively involved in Dholera through integrated townships, industrial parks and supporting infrastructure, we see these policy measures translating into visible progress on the ground. Industrialisation on this scale must be complemented by well-planned residential, commercial and social infrastructure to create liveable, inclusive urban ecosystems.
The state’s sustained investments provide confidence for long-term private sector participation and responsible urban development.
With policy clarity, infrastructure development and industrial interest coming together, Dholera is entering a decisive phase of growth. The Gujarat Budget 2026-27 reinforces the region’s critical role in India’s next phase of industrial expansion.
The author is Managing Director of GAP Group, one of western India’s fastest-growing infrastructure and real estate developers; Views presented are personal.
