Gujarat to launch Indian AI Research Organisation at GIFT City to boost AI R&D

Gujarat Chief Minister Bhupendra Patel on Tuesday gave in-principle approval for the establishment of the Indian AI Research Organisation (IAIRO), a new institution aimed at strengthening research and development (R&D) in artificial intelligence (AI).

The facility will be set up through a tripartite partnership involving the Gujarat state government, the Central government, and the Indian Pharmaceutical Alliance (IPA) under a Public-Private Partnership (PPP) model, according to a government release. The initiative seeks to accelerate the national AI ecosystem under the leadership of Prime Minister Narendra Modi and the guidance of the Gujarat Chief Minister.

IAIRO will be operational as a special-purpose vehicle in GIFT City, Gujarat’s smart business and financial hub near Gandhinagar, from January 1, 2026. The institute will be constituted as a non-profit entity under Section 8 of the Companies Act, 2013, with an estimated budget of Rs 300 crore for the first five years. Each of the three partners the state government, the Centre, and the private sector will contribute approximately one-third of the funds.

The IPA, comprising 23 leading pharmaceutical companies including Cipla, Sun Pharma, and Torrent Pharma, will serve as the anchor private partner and contribute Rs 25 crore for 2025-26.

Gujarat’s move aligns with the India AI Mission of the Union Ministry of Information Technology and the state government’s AI Action Plan. To further support AI-driven development, the government has established an AI task force aimed at leveraging artificial intelligence to improve healthcare, education, agriculture, and other services, enhancing quality of life and promoting sustainable development.

IAIRO is envisioned as a multidisciplinary hub for AI, focusing on advanced research and development, creation of AI-based products and solutions, and collaboration among academic institutions, industries, startups, and government bodies. It will also concentrate on intellectual property creation, capacity building, and policy-oriented research. The institute will operate on a hybrid compute model, combining on-premise GPU infrastructure with national platforms such as the IndiaAI Cloud. With this setup, Gujarat aims to establish itself as a leading center for AI innovation in India, driving research, policy, and practical applications across multiple sectors.