Gujarat will establish the Indian AI Research Organization (IAIRO) in GIFT City from Jan 2026. A tripartite PPP with state, central govt, and the Indian Pharmaceutical Alliance, it has a Rs 300 crore budget to boost AI research and development.
Gujarat is taking a landmark initiative at the beginning of 2026 to strengthen research and development in artificial intelligence (AI) and accelerate the national AI ecosystem. For this purpose, Chief Minister Bhupendra Patel has granted in-principle approval for the establishment of the Indian AI Research Organization (IAIRO) through a tripartite partnership involving the State Government, the Government of India, and the Indian Pharmaceutical Alliance (IPA).
Establishment and Funding Model
The Gujarat government said it is becoming the first state in the country to establish the IAIRO under the PPP model. This IAIRO will be made operational as a Special Purpose Vehicle in GIFT City from January 1, 2026. It will be constituted as a non-profit institute under Section 8 of the Companies Act, 2013. Additionally, an estimated budget of approximately Rs 300 crore has been earmarked for the first five years of the project, in which the State Government, the Central Government, and the private partner will each contribute 33.33 per cent. The Indian Pharmaceutical Alliance has joined as the anchor private partner for IAIRO and will contribute Rs 25 crore for the year 2025-26, according to a statement from the Gujarat government. The IPA includes around 23 leading pharmaceutical companies, including Cipla, Torrent Pharma, and Sun Pharma, the statement added.
Alignment with National and State AI Missions
This initiative of Gujarat is aligned with the objectives of the India AI Mission of the Ministry of Information Technology, Government of India, as well as the AI Action Plan of the State Government's Science and Technology Department. To accelerate sustainable development by improving the quality of life for many people through transformative improvements in healthcare, education, agriculture, and other services using artificial intelligence, the State Government has also constituted an AI Task Force under the guidance of Chief Minister Patel.
IAIRO's Core Activities and Vision
Moving further in this direction, IAIRO is now envisioned as a multidisciplinary hub for AI. The core activities of IAIRO will include advanced AI research and development, development of AI-based products and solutions, and fostering collaboration among academic institutions, industries, startups, and the government.
In addition, IAIRO will also focus on intellectual property (IP) creation, capacity building, and policy-based research.
Operational Framework
IAIRO will function under a hybrid compute model, integrating on-premise GPU infrastructure along with national platforms such as the IndiaAI Cloud.
Projected Impact and Goals
This initiative will prepare a skilled and future-ready AI workforce, position India as a globally competitive leader in the AI sector, and further strengthen Gujarat's role as a hub for emerging technology and innovation. (ANI)
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