Gandhinagar : Under the leadership of Prime Minister Shri Narendra Modi and the guidance of Chief Minister Shri Bhupendra Patel, Gujarat is set to take a landmark step at the beginning of 2026 to strengthen artificial intelligence (AI) research and accelerate India’s national AI ecosystem.
In this direction, the Chief Minister has granted in-principle approval for the establishment of the Indian AI Research Organization (IAIRO) through a tripartite Public–Private Partnership (PPP) involving the State Government, the Government of India, and the Indian Pharmaceutical Alliance (IPA).
With this initiative, Gujarat has earned the distinction of becoming the first state in the country to establish an AI research organization under the PPP model, aligning with the national vision of responsible and inclusive AI development. The IAIRO will commence operations from 1 January 2026 as a Special Purpose Vehicle (SPV) based in GIFT City, Gandhinagar. It will be constituted as a non-profit institution under Section 8 of the Companies Act, 2013. An estimated budget of approximately ₹300 crore has been earmarked for the first five years, with equal contributions of 33.33 percent each from the State Government, the Central Government, and the private partner.
The Indian Pharmaceutical Alliance will serve as the anchor private partner and has committed ₹25 crore for the financial year 2025–26. The IPA represents around 23 leading pharmaceutical companies, including Cipla, Torrent Pharma, and Sun Pharma. The establishment of IAIRO is aligned with the India AI Mission of the Ministry of Electronics and Information Technology, Government of India, and the AI Action Plan of the Gujarat Government’s Science and Technology Department. To further advance this vision, the State Government has constituted an AI Task Force under the guidance of Chief Minister Bhupendra Patel, with a focus on leveraging AI to drive sustainable development and improve quality of life across sectors such as healthcare, education, agriculture, and public services.
Envisioned as a multidisciplinary AI hub, IAIRO’s core activities will include advanced AI research and development, creation of AI-driven products and solutions, and collaboration among academia, industry, startups, and government. The organisation will also focus on intellectual property creation, capacity building, and policy-oriented research. IAIRO will operate under a hybrid compute model, integrating on-premise GPU infrastructure with national platforms such as the IndiaAI Cloud.
Guided by the leadership of the Chief Minister, this initiative aims to build a skilled, future-ready AI workforce, position India as a globally competitive AI leader, and further strengthen Gujarat’s standing as a national hub for emerging technologies and innovation.