"Addition of Ahmedabad will make significant contributions to traffic flows to Abu Dhabi and beyond," said the airline's president and chief executive James Hogan.
"Ahmedabad is an economic centre and daily flights to Abu Dhabi will build greater ties with the UAE's capital as it continues to invest in world-class development projects and attract business and leisure travellers," he added.
The new service to Ahmedabad will offer nearly 1,000 seats a week into the city.
The airline said that it anticipates strong traffic flows from Ahmedabad to Abu Dhabi and onto its European and US destinations.
Ahmedabad will be Etihad Airways' ninth destination within India and the new route will be served by an Airbus A320 aircraft.
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