Gujarat is set to establish the Indian AI Research Organisation (IAIRO) from January 1, 2026, under a Public-Private Partnership (PPP) model. This move aims to enhance India’s artificial intelligence (AI) ecosystem. Chief Minister Bhupendra Patel has given the green light for this initiative, making Gujarat the first state in the country to create such an institution through a PPP framework.
The IAIRO will be formed through a tripartite partnership involving the Government of Gujarat, the Government of India, and the Indian Pharmaceutical Alliance (IPA). It will be a Special Purpose Vehicle (SPV) located at GIFT City and registered as a non-profit entity under Section 8 of the Companies Act, 2013. An estimated budget of approximately Rs 300 crore has been allocated for the first five years, with equal contributions from the state government, the Central government, and the private partner.
The Indian Pharmaceutical Alliance, representing nearly 23 leading pharmaceutical companies, will be the anchor private partner contributing Rs 25 crore in 2025-26. The IAIRO initiative aligns with the IndiaAI Mission of the Ministry of Electronics and Information Technology, Government of India, and Gujarat’s AI Action Plan under the State Science and Technology Department.
To promote the use of AI for sustainable development and enhance quality of life, the state government has formed an AI Task Force under the Chief Minister’s guidance. IAIRO, envisioned as a multidisciplinary hub, will concentrate on advanced AI research and development, creating AI-based products and solutions, and fostering collaboration among academia, industry, startups, and government.
The organization’s responsibilities will encompass intellectual property creation, capacity building, and policy-oriented research. It will operate on a hybrid compute model, utilizing on-premise GPU infrastructure along with national platforms like the IndiaAI Cloud. Through this initiative, Gujarat aims to cultivate a skilled AI workforce, boost India’s global competitiveness in AI, and solidify its position as a key center for innovation and emerging technologies.
