Indian AI Research Organization to be set up in GIFT City in Jan'26

Gujarat is set to take a major step towards strengthening artificial intelligence research and innovation with the establishment of the Indian AI Research Organization (IAIRO) in GIFT City, Gandhinagar, from January 1, 2026.Chief Minister Bhupendra Patel has granted in-principle approval for setting up IAIRO through a tripartite public-private partnership involving the Gujarat government, the Union government and the Indian Pharmaceutical Alliance (IPA). The initiative aims to accelerate research and development in artificial intelligence and bolster India’s national AI ecosystem.
The Gujarat government said it will become the first state in the country to establish such an AI research body under the PPP model. IAIRO will be made operational as a Special Purpose Vehicle in GIFT City and will function as a non-profit institution under Section 8 of the Companies Act, 2013.An estimated budget of around Rs 300 crore has been earmarked for the first five years of the project. The funding will be equally shared by the state government, the central government and the private partner, with each contributing 33.33 per cent.
The Indian Pharmaceutical Alliance has come on board as the anchor private partner for IAIRO and will contribute Rs 25 crore during the 2025–26 financial year. The IPA represents around 23 leading pharmaceutical companies, including Cipla, Torrent Pharma and Sun Pharma.The initiative is aligned with the objectives of the India AI Mission of the Ministry of Information Technology and the AI Action Plan of the Gujarat government’s Science and Technology Department. As part of its broader AI push, the state government has also constituted an AI Task Force to promote the use of artificial intelligence for sustainable development and improvements in sectors such as healthcare, education and agriculture.IAIRO is envisioned as a multidisciplinary hub for artificial intelligence. Its core focus areas will include advanced AI research and development, creation of AI-driven products and solutions, and collaboration among academic institutions, industry players, startups and government agencies.
The organisation will also work on intellectual property creation, capacity building and policy-oriented research. It will operate under a hybrid compute model, combining on-premise GPU infrastructure with national platforms such as the IndiaAI Cloud.Officials said the initiative is expected to help build a skilled and future-ready AI workforce, position India as a globally competitive player in artificial intelligence, and further strengthen Gujarat’s standing as a hub for emerging technologies and innovation.

(State Correspondent)