AHMEDABAD: The Indian AI Research Organisation (IAIRO) will be established in Gujarat’s GIFT City through a public-private partnership among the Gujarat government, the Union government, and the Indian Pharmaceutical Alliance, the state government said in a statement.
Chief minister Bhupendra Patel granted in-principle approval for the project on Tuesday in an effort to strengthen research and development in artificial intelligence, the statement said.
“With this, Gujarat becomes the first state in the country to establish an AI research institution under the PPP model. The initiative is aligned with the broader national vision articulated by Prime Minister Narendra Modi to strengthen India’s artificial intelligence ecosystem and promote domestic research and development capacity,” the state government said.
IAIRO will be constituted as a special-purpose vehicle and registered as a non-profit entity.
It will operate from GIFT City, which is being positioned as a hub for financial services, technology and innovation.
The project has an estimated outlay of around ₹300 crore for the first five years. The funding structure constitutes equal contributions of 33.33% each from the state government, the central government and the private partner.
The Indian Pharmaceutical Alliance has been identified as the anchor private partner and will contribute ₹25 crore during the 2025–26 financial year, the statement said.
The alliance represents 23 pharmaceutical companies, including Cipla, Torrent Pharma and Sun Pharma, and its participation is expected to link AI research with applied use cases in healthcare and life sciences, it added.
The IAIRO initiative is aligned with the India AI Mission of the Ministry of Electronics and Information Technology and the Gujarat government’s AI Action Plan under the Science and Technology Department. The state government has also established an AI Task Force to guide the deployment of artificial intelligence across sectors such as healthcare, education, agriculture, and public services.
According to the plan, IAIRO will focus on advanced AI research and development, creation of AI-based products and solutions, and collaboration among academic institutions, industry, startups and government agencies. Its mandate will also include intellectual property creation, capacity building and policy-oriented research.
