Gujarat becomes first state to set up PPP AI research body

Gandhinagar, Dec 30:  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 Rs 300 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.

Envisioned as a multidisciplinary hub, IAIRO will focus on advanced AI research and development, creation of AI-based products and solutions, and collaboration among academia, industry, startups, and government. Its mandate will also include intellectual property creation, capacity building, and policy-oriented research.

The organisation will operate on a hybrid compute model, combining on-premise GPU infrastructure with national platforms such as the IndiaAI Cloud.

With this initiative, Gujarat aims to build a skilled, future-ready AI workforce, strengthen India’s global competitiveness in artificial intelligence, and further consolidate the state’s position as a leading hub for innovation and emerging technologies.

--IANS