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UAE agrees to set up major food cluster in Andhra Pradesh
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Friday, 23 January, 2026, 08 : 00 AM [IST]
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Our Bureau, Mumbai
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In a significant boost for India’s food processing sector, the United Arab Emirates (UAE) has agreed to establish a dedicated food cluster in the southern Indian state of Andhra Pradesh. The agreement was reached during high-level discussions between Andhra Pradesh Chief Minister N. Chandrababu Naidu and UAE Minister of Economy and Tourism Abdulla bin Touq Al Marri on the sidelines of the World Economic Forum (WEF) 2026 in Davos, Switzerland.
Under the strategic collaboration, the UAE will work closely with Andhra Pradesh to develop the new food processing cluster, aimed at enhancing production capabilities, strengthening value chains and creating employment opportunities. The initiative is expected to bolster the state’s position as a major food processing and agri-business hub.
In addition to the food cluster, the UAE has committed to facilitating the entry of around 40 UAE-based companies into Andhra Pradesh across sectors such as food processing, logistics, renewable energy, and infrastructure. This marks a deeper economic partnership aimed at driving investment, exports and industrial growth in the state.
The discussions also covered plans for developing multi-modal logistics parks and modern infrastructure projects. One key proposal involves the UAE’s Sharaf Group establishing a logistics hub in Andhra Pradesh to strengthen connectivity and supply chain operations.
Chief Minister Naidu highlighted the state’s investor-friendly environment, strong coastal connectivity and strategic advantages in food security, port-based industries, and urban development. Leaders from both sides expressed confidence that the UAE’s commitment will accelerate economic expansion, generate jobs and elevate Andhra Pradesh’s global trade footprint.
This landmark agreement not only reinforces ties between India and the UAE but also underscores Andhra Pradesh’s emergence as a preferred destination for international investment in the food and allied sectors.
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