Gujarat CM gives approval to set up Indian AI Research Organisation, a non-profit body with ₹300 Cr funding, operational by 1st Jan 2026

Gujarat has approved the setting up of the Indian AI Research Organisation (IAIRO) in GIFT City near Gandhinagar to support work in artificial intelligence (AI). Chief Minister Bhupendra Patel gave in-principle approval for the plan on December 30. 

The project will follow a public-private partnership model, with support from the Gujarat government, the central government, and private players. The move is seen as an important step in strengthening India’s AI research base.

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What the Indian AI Research Organisation Will Do

The Indian AI Research Organisation will be a non-profit body registered under Section 8 of the Companies Act. It is expected to begin operations from January 1, 2026, and will be based in GIFT City, which already hosts several finance and tech firms.

The organisation will focus on:

• AI research and practical projects

• Building AI tools and systems for real use

• Working with universities, companies, and government teams

• Supporting research in areas such as health, education, and farming

• Training and skill development linked to AI

Officials say the aim is to create a common platform where research groups and industry can work together on AI projects that are useful for the country. The work will also support policy inputs and data-based studies linked to AI use in public services.

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IAIRO Funding Plan & What CM Bhupendra Patel said 

The project is planned with a total outlay of around ₹300 crore over five years. The funding will be shared equally between the Gujarat government, the Government of India, and private partners. 

The Indian Pharmaceutical Alliance (IPA) will be the main private partner. It includes major drug makers such as Cipla, Sun Pharma, and Torrent Pharma, and will contribute ₹25 crore in the 2025–26 financial year.

Chief Minister Bhupendra Patel announced the approval on social media and said,“I am glad to share that Gujarat is set to take a historic leap in the field of Artificial Intelligence with the establishment of the Indian AI Research Organization (IAIRO) at GIFT City.”

State officials said the project fits well with the national India AI Mission and Gujarat’s own science and technology plans. With IAIRO coming up in GIFT City, the state expects more research activity, better job options, and stronger links between education and industry.

With this approval, Gujarat becomes the first state in India to set up a national-level AI research organisation under a shared funding model.

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