New Indian AI Research Organisation (IAIRO) to Drive Innovation from Gujarat

Gujarat has approved the establishment of the Indian AI Research Organisation (IAIRO) at GIFT City, Gandhinagar. It will operate under a public-private partnership (PPP) involving the state government, central government, and the Indian Pharmaceutical Alliance, with an initial ₹300 crore budget for five years.

Key Highlights of IAIRO at GIFT City

• Approval Date: December 30, 2025
• Location: GIFT City, near Gandhinagar, Gujarat
• Structure: Special Purpose Vehicle (SPV), registered as a non-profit entity under Section 8 of the Companies Act, 2013
• Partnership Model: Tripartite collaboration between Gujarat State Government, Government of India, and Indian Pharmaceutical Alliance (IPA)
• Funding: ₹300 crore for the first five years; contributions split equally (33.33%) among partners; IPA to contribute ₹25 crore in FY 2025–26
• Operational Start: January 1, 2026

Objectives of IAIRO

• Strengthen AI R&D with cutting-edge research and applications
• Accelerate India’s AI ecosystem in line with national innovation goals
• Encourage industry-academia collaboration
• Drive sectoral impact in healthcare, pharmaceuticals, fintech, and governance

Why This Matters

Aspect	Significance
Location (GIFT City)	India’s premier financial and tech hub, offering global connectivity and regulatory flexibility
PPP Model	Ensures shared responsibility and funding between government and private sector
Budget Allocation	₹300 crore signals strong commitment to long-term AI research
Anchor Partner (IPA)	Pharma industry’s involvement highlights AI’s role in drug discovery and healthcare analytics
National Strategy	Reinforces India’s ambition to be a global AI leader

Challenges & Considerations

• Execution risks due to coordination among multiple partners
• Need for sustained investment in AI education and talent pipeline
• Global competition from established AI hubs
• Importance of ethical AI and data governance

In short: The Indian AI Research Organisation at GIFT City is a landmark step in India’s AI journey, blending government vision with private sector expertise. If executed well, it could position Gujarat—and India—as a global hub for AI innovation.