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The Gujarat government has approved the establishment of the Indian AI Research Organisation (IAIRO) at GIFT City, aimed at strengthening artificial intelligence research and development. The institution will be set up under a public-private partnership involving the state government, the Union government and the Indian Pharmaceutical Alliance, and will operate as a non-profit special purpose vehicle from early January 2026. An estimated budget of around INR 300 crore has been earmarked for the first five years, with funding shared equally among the three partners. IAIRO will focus on advanced R&D, creation of AI-based products and solutions, collaboration with academia and industry, and capacity building to support India's AI ecosystem.
The Gujarat government has granted in-principle approval for the Indian AI Research Organisation (IAIRO) to be established at GIFT City near Gandhinagar, marking a significant development in the state's technology and innovation landscape. The initiative is designed to enhance research and development in artificial intelligence and accelerate the national AI ecosystem. Advertisement
IAIRO will be set up under a tripartite public-private partnership, involving equal contributions from the Gujarat state government, the Government of India and the Indian Pharmaceutical Alliance. The organisation will be structured as a non-profit special purpose vehicle and is expected to begin operations from January 1, 2026.
An estimated budget of around INR 300 crore has been allocated for the first five years of the project, with each partner contributing roughly one-third of the total outlay. The Indian Pharmaceutical Alliance, which represents multiple leading pharmaceutical firms, will serve as the anchor private partner and contribute an initial sum during the 2025-26 financial year.
IAIRO's mandate includes advancing AI research and development, developing AI-driven products and solutions, and fostering collaboration among academic institutions, industry stakeholders, startups and government agencies. The institution will also focus on intellectual property creation, capacity building and policy-oriented research to support broader adoption of AI technologies.
The initiative aligns with national priorities under the India AI Mission and Gujarat's AI Action Plan, reflecting efforts to position the state as a hub for technological innovation and strengthen India's capabilities in artificial intelligence.
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