Gujarat to become 1st state to set up AI research org in PPP mode

Gandhinagar: In a move to strengthen India’s artificial intelligence (AI) ecosystem, Gujarat will operationalise the Indian AI Research Organisation (IAIRO) from January 1, 2026, under a Public-Private Partnership (PPP) model.

Chief Minister Bhupendra Patel has granted in-principle approval for the initiative, making Gujarat the first state in the country to establish such an institution through a PPP framework.

Aligned with the vision of Prime Minister Narendra Modi and under the leadership of Chief Minister Bhupendra Patel, the initiative aims to boost AI research and development while accelerating national efforts in emerging technologies. The IAIRO will be established through a tripartite partnership involving the Government of Gujarat, the Government of India, and the Indian Pharmaceutical Alliance (IPA).

The organisation will be set up as a Special Purpose Vehicle (SPV) at GIFT City and registered as a non-profit entity under Section 8 of the Companies Act, 2013.

An estimated budget of around Rs300 crore has been earmarked for the first five years, with equal contributions of 33.33 per cent each from the state government, the Central government, and the private partner.

The Indian Pharmaceutical Alliance has come on board as the anchor private partner and will contribute Rs 25 crore in 2025-26. The IPA represents nearly 23 leading pharmaceutical companies. The IAIRO initiative is aligned with the IndiaAI Mission of the Ministry of Electronics and Information Technology, Government of India, as well as Gujarat’s AI Action Plan under the State Science and Technology Department.

To further drive the use of AI for sustainable development and improved quality of life, the state government has also constituted an AI Task Force under the guidance of the Chief Minister.