GIFT City: With the aim of strengthening research and development in the artificial intelligence (AI) sector in the country, Chief Minister Bhupendra Patel has given in-principle approval for the establishment of the Indian AI Research Organization (IAIRO) through a tripartite partnership between the Government of Gujarat, the Government of India, and the Indian Pharmaceutical Alliance (IPA).

With this initiative, Gujarat becomes the first state in the country to establish an AI research organization on the Public-Private Partnership (PPP) model. IAIRO will function as a Special Purpose Vehicle (SPV) in GIFT City from 1 January 2026 and will be registered as a Section 8 non-profit company under the Companies Act, 2013.

A budget of approximately ₹300 crore has been allocated for the first five years of the project, with equal contributions of 33.33 percent each from the state government, central government, and private partners. The Indian Pharmaceutical Alliance has joined as the anchor private partner and will contribute ₹25 crore in 2025–26. The IPA includes 23 leading pharma companies, including Cipla, Torrent Pharma and Sun Pharma.

This initiative aligns with the objectives of the India AI Mission of the Government of India and the AI Action Plan of the Gujarat Science and Technology Department. The state government has also constituted an AI Task Force to promote sustainable development and enhance services in sectors such as healthcare, education and agriculture through artificial intelligence. In this direction, IAIRO is envisioned as a multi-disciplinary AI hub.

IAIRO’s core activities include advanced AI research and development, creation of AI-based products and solutions, and collaboration between academia, industry, startups and government bodies. It will also focus on intellectual property creation, capacity building and policy research, and will operate under a hybrid compute model integrating national platforms such as IndiaAI Cloud with on-premise GPU infrastructure.

This Gujarat-led initiative is expected to build a highly skilled AI workforce, strengthen innovation in emerging technologies and contribute to positioning India as a globally competitive leader in the AI sector. DeshGujarat