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Gujarat Govt Approves Indian AI Research Organization at GIFT City with Rs 300 Crore Funding

IAIRO to focus on cutting-edge AI R&D, industry-academia collaboration, and AI-driven innovations under tripartite partnership with state, central government, and Indian Pharmaceutical Alliance
Indian Masterminds Stories

Ahmedabad: The Gujarat government on Tuesday granted in-principle approval for the establishment of the Indian AI Research Organization (IAIRO) at GIFT City in Gandhinagar. The Bhupendra Patel-led BJP government announced an allocation of Rs 300 crore to support the centre’s creation and operations.

Tripartite Partnership Model

The IAIRO will be established through a tripartite partnership involving:

  • State Government of Gujarat
  • Union Government of India
  • Indian Pharmaceutical Alliance (IPA) as the anchor private partner

The IPA, representing 23 leading pharmaceutical companies including Cipla, Torrent Pharma, and Sun Pharma, will contribute Rs 25 crore for the year 2025–26.

Read also: Gujarat Reclaims Tiger State Status After 33 Years as NTCA Confirms Resident Tiger in Ratanmahal

Operational and Legal Framework

The government stated that IAIRO will be made operational as a Special Purpose Vehicle (SPV) in GIFT City from 1 January 2026. It will be constituted as a non-profit institute under Section 8 of the Companies Act, 2013, enabling it to focus on research without commercial profit pressures.

Core Activities and Research Focus

IAIRO will focus on cutting-edge AI research and development across multiple sectors. Core activities include:

  • Advanced AI R&D and AI-based product development
  • Collaboration among academic institutions, industries, startups, and the government
  • Intellectual Property (IP) creation and patentable innovations
  • Capacity building and policy-based research

The organization will also operate under a hybrid compute model, combining on-premise GPU infrastructure with national AI platforms such as the IndiaAI Cloud, to enable large-scale AI computations and projects.

Strategic Importance

The establishment of IAIRO at GIFT City aims to position Gujarat as a hub for AI research in India, particularly in pharmaceutical applications through IPA’s involvement. By fostering collaboration between industry, government, and academia, the initiative is expected to accelerate AI innovation, product development, and policy research in critical sectors.

Read also: Gujarat Trains Over 7,000 Doctors Annually, CM Bhupendra Patel Highlights State’s Healthcare Progress


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