Gujarat CM Approves Establishment of Indian AI Research Organization in GIFT City

Ahmedabad, December 30. Gujarat Chief Minister Bhupendra Patel has granted in-principle approval for the establishment of the Indian AI Research Organization (IAIRO) to foster research and development in the field of artificial intelligence. This significant decision was taken on Tuesday to set up the center under a public-private partnership model involving a tripartite collaboration between the state government, the central government, and the Indian Pharmaceutical Alliance.

The initiative has been undertaken under the guidance of Prime Minister Narendra Modi and the Chief Minister to accelerate the national AI ecosystem and boost research efforts. As per agency report, the IAIRO will commence operations as a Special Purpose Vehicle from January 1 at GIFT City near Gandhinagar. It will be constituted as a non-profit institution under Section 8 of the Companies Act, 2013.

A budget of approximately Rs 300 crore has been allocated for the first five years of the project. The funding structure involves an equal contribution of 33.33 percent each from the state government, the central government, and the private partner. The Indian Pharmaceutical Alliance has joined as the principal private partner and will contribute Rs 25 crore for the year 2025-26. The alliance comprises about 23 major pharmaceutical companies, including Cipla, Torrent Pharma, and Sun Pharma.

This initiative by Gujarat aligns with the objectives of the India AI Mission of the Union Ministry of Information Technology and the AI Action Plan of the state government's Department of Science and Technology. The core activities of IAIRO will encompass advanced research and development, the creation of AI-based products, and the promotion of collaboration among educational institutions, industries, and startups. Additionally, the institute will focus on intellectual property creation and capacity building.