Gujarat is set to make a major push in artificial intelligence research with plans to establish the Indian AI Research Organization (IAIRO) at the start of 2026, marking a first-of-its-kind initiative by any Indian state.
The project has received in-principle approval from Chief Minister Bhupendra Patel and will be implemented through a public–private partnership involving the State Government, the Government of India, and the Indian Pharmaceutical Alliance (IPA).
According to the Gujarat government, IAIRO will be launched as a Special Purpose Vehicle in GIFT City and will begin operations on January 1, 2026. The institute will function as a non-profit entity under Section 8 of the Companies Act, 2013, with a focus on advanced research, innovation, and application of artificial intelligence across key sectors.
An estimated budget of around Rs 300 crore has been allocated for the first five years of the initiative. Funding will be shared equally among the state government, the central government, and the private sector partner, with each contributing one-third of the total cost. The Indian Pharmaceutical Alliance has been designated as the anchor private partner and is expected to contribute Rs 25 crore during the 2025–26 financial year.
The IPA represents about 23 major pharmaceutical companies, including Cipla, Torrent Pharmaceuticals, and Sun Pharma. The collaboration is expected to bring strong industry participation into AI research, particularly in areas such as healthcare and drug development.
The initiative aligns with the objectives of the IndiaAI Mission of the Ministry of Electronics and Information Technology and complements Gujarat’s own AI Action Plan under its Science and Technology Department. As part of this broader vision, the state government has also constituted an AI Task Force under the leadership of the Chief Minister to promote the responsible and scalable use of artificial intelligence.
IAIRO is envisioned as a multidisciplinary centre that will drive cutting-edge AI research, develop AI-powered products and solutions, and facilitate collaboration between academia, industry, startups, and government agencies. Its mandate will also include intellectual property generation, skill development, and policy-oriented research.
The organisation will operate under a hybrid computing framework, combining on-site GPU infrastructure with national digital platforms such as the IndiaAI Cloud.
