Indian AI Research Organization to Be Established in GIFT City, Gandhinagar

India is set to take a major leap in artificial intelligence research and innovation. At the start of 2026 Gujarat will host the Indian AI Research Organization (IAIRO) at GIFT City, Gandhinagar. Which is marking a landmark step in strengthening the country’s AI ecosystem through collaboration between government, industry, and academia.

Why In The News?

The Gujarat government, led by Bhupendra Patel, has granted in-principle approval for the establishment of the Indian AI Research Organization (IAIRO).

IAIRO will be,

• Set up at GIFT City
• Operational from January 1, 2026
• India’s first state-led AI research body under a PPP model

Institutional Structure and Funding Model

IAIRO will be established through a tripartite Public–Private Partnership (PPP) involving,

• Government of Gujarat
• Government of India
• Indian Pharmaceutical Alliance (IPA)

Key Structural Features

• Registered as a non-profit organization
• Incorporated under Section 8 of the Companies Act, 2013
• Operates as a Special Purpose Vehicle (SPV)

Funding Details

• Total outlay: ₹300 crore (first five years)
• Equal contribution (33.33%) by Centre, State and private partner
• IPA to contribute ₹25 crore in 2025–26
• IPA members include Cipla, Torrent Pharma, and Sun Pharma

Objectives of IAIRO

The Indian AI Research Organization is envisioned as a multidisciplinary national hub for AI.

Its core objectives include,

• Advanced AI research and development
• Development of AI based products and solutions
• Strengthening industry academia government collaboration
• Promoting intellectual property (IP) creation
• Supporting policy oriented AI research
• Building AI capacity and talent

Technology and Infrastructure

IAIRO will function on a hybrid compute model, combining,

• On-premise GPU based high-performance computing
• Integration with national digital platforms like the IndiaAI Cloud
• This approach ensures scalable computing power for cutting-edge AI research while optimising costs and accessibility.

Alignment with National and State AI Policies

The initiative aligns closely with,

• India AI Mission of the Ministry of Electronics and IT
• Gujarat’s AI Action Plan under its Science and Technology Department
• To further institutionalize AI governance, Gujarat has also set up an AI Task Force under the guidance of the Chief Minister.

Why GIFT City Chosen?

GIFT City is India’s first operational smart financial and technology hub, designed for,

• Global financial services
• Emerging technologies
• Innovation led institutions

Locating IAIRO in GIFT City provides,

• World-class digital and physical infrastructure
• Proximity to fintech, pharma, and startup ecosystems
• International visibility and regulatory ease

Key Data at a Glance

Aspect	Details/Points
Why in news?	Gujarat govt approved India’s first state-led AI research body
Organization Name	Indian AI Research Organization (IAIRO)
Location	GIFT City, Gandhinagar (Gujarat)
Start Date	1st January, 2026
Participating Bodies	Govt of Gujarat, Govt of India, Indian Pharmaceutical Alliance (IPA)
Total Budget	₹300 crore (first 5 years)
Funding Pattern	Equal share (33.33%) by Centre, State & Private partner
Model	Public Private Partnership

Question

Q. Where will the Indian AI Research Organization (IAIRO) be established?

A. Bengaluru
B. Hyderabad
C. GIFT City, Gandhinagar
D. Pune