Gandhinagar: Gujarat is set to launch the Indian AI Research Organization (IAIRO) in GIFT City, Gandhinagar, marking a significant step toward strengthening artificial intelligence research and development in the country. The initiative, approved in principle by Chief Minister Bhupendra Patel, will begin operations from 1 January 2026 under a Public-Private Partnership (PPP) model involving the State Government, Central Government, and Indian Pharmaceutical Alliance (IPA).
Gujarat Becomes First State to Establish IAIRO under PPP Model
With this initiative, Gujarat becomes the first state in India to set up an AI research organization under a PPP model. The move aligns with the vision of Prime Minister Narendra Modi and the state government’s AI Action Plan, aiming to accelerate the national AI ecosystem while fostering innovation across industries.
IAIRO will operate as a non-profit institute under Section 8 of the Companies Act, 2013, and will function as a Special Purpose Vehicle (SPV) based in GIFT City. The project has an estimated budget of ₹300 crore for the first five years, with the State Government, Central Government, and private partner each contributing 33.33%.
Indian Pharmaceutical Alliance as Anchor Private Partner
The Indian Pharmaceutical Alliance (IPA), comprising 23 leading pharmaceutical companies including Cipla, Torrent Pharma, and Sun Pharma, has joined as the anchor private partner. IPA will contribute ₹25 crore for the fiscal year 2025–26, supporting the initial phase of the organization.
This partnership will facilitate multidisciplinary AI research, especially in sectors like healthcare, education, agriculture, and other public services, helping to accelerate sustainable development and improve the quality of life for citizens.
Core Activities and Focus Areas of IAIRO
IAIRO is envisioned as a multidisciplinary hub for artificial intelligence. Its key activities will include:
- Advanced AI research and development
- Creation of AI-based products and solutions
- Collaboration with academic institutions, industries, startups, and government
- Intellectual property creation and policy-based research
- Capacity building and AI workforce development
IAIRO will operate under a hybrid compute model, integrating on-premise GPU infrastructure with national platforms like the IndiaAI Cloud, enabling cutting-edge AI research and development.
Preparing a Future-Ready AI Workforce
Under the guidance of Chief Minister Bhupendra Patel, IAIRO aims to position India as a globally competitive leader in AI while strengthening Gujarat’s role as a technology and innovation hub. The initiative will also focus on training a skilled, future-ready workforce, fostering innovation, and encouraging public-private collaborations to scale AI-driven solutions across sectors.
This initiative represents a landmark step for Gujarat and India in leveraging artificial intelligence for national growth, innovation, and social impact, establishing a world-class research organization that bridges industry, academia, and government efforts.
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