Gujarat Chief Minister Bhupendra Patel has granted in-principle approval for the establishment of the Indian AI Research Organisation (IAIRO) at GIFT City, marking a significant step toward positioning the state as a national hub for advanced artificial intelligence research and development. The proposed organisation will be set up as a Section 8 non-profit entity and operationalised through a Special Purpose Vehicle (SPV) beginning January 1, 2026.
The initiative is envisioned as a long-term national platform for AI innovation, with a planned budget of approximately ₹300 crore over its first five years. Funding for the project will be shared equally between the Gujarat government, the Government of India, and private-sector partners, reflecting a collaborative public–private model. As part of this arrangement, the Indian Pharmaceutical Alliance (IPA) has been confirmed as the anchor private partner and will contribute ₹25 crore during the 2025–26 period, according to the official statement.
IAIRO’s mandate will span the full AI innovation lifecycle. The organisation will focus on advanced research, the development of AI-based products and solutions, and collaboration across academia, industry, startups, and government institutions. Beyond technology development, it will also work on intellectual property creation, talent and capacity building, and policy-oriented research, aiming to strengthen India’s overall AI ecosystem.
A key feature of the proposed organisation is its technology infrastructure strategy. IAIRO will adopt a hybrid compute model that combines on-premise GPU infrastructure with access to national platforms such as the IndiaAI Cloud. This approach is intended to provide researchers and developers with scalable, high-performance computing resources while optimising costs and ensuring alignment with national AI initiatives.
By situating the organisation at GIFT City, the Gujarat government aims to leverage the region’s growing reputation as an international financial and technology hub. The location is expected to help attract global researchers, industry partners, and startups, while fostering cross-border collaboration and innovation.
The establishment of IAIRO aligns with broader national efforts to build sovereign AI capabilities and reduce dependence on a handful of global technology providers. By creating a neutral, non-profit platform with shared governance, policymakers hope to accelerate responsible AI development that serves public interest as well as commercial needs.
Once operational, the Indian AI Research Organisation is expected to play a central role in shaping India’s AI research agenda, supporting innovation across sectors, and strengthening the country’s position in the global AI landscape.
