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Gujarat to Launch Indian AI Research Organization in 2026

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Gujarat to Launch Indian AI Research Organization in 2026

  • 31 Dec, 2025
  • 430

Introduction to IAIRO

India is poised for a significant advancement in artificial intelligence (AI) research and innovation. The Indian AI Research Organization (IAIRO) will be established at GIFT City, Gandhinagar, with operations commencing on January 1, 2026. This initiative marks a crucial step in enhancing the country’s AI ecosystem through collaboration among government, industry, and academia.

Why Is This Initiative in the News?

The Gujarat government, under the leadership of Chief Minister Bhupendra Patel, has granted in-principle approval for the formation of IAIRO. This state-led AI research body will operate under a Public-Private Partnership (PPP) model, emphasizing the collaborative spirit needed for innovation.

Establishment and Structure of IAIRO

IAIRO will be registered as a non-profit entity and incorporated under Section 8 of the Companies Act, 2013. It will function as a Special Purpose Vehicle (SPV) that brings together:

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

Funding Details

The total funding for IAIRO is set at ₹300 crore for the first five years, with equal contributions of 33.33% from the central government, the state government, and the private sector. The IPA will contribute ₹25 crore in the financial year 2025-26, with its members including major pharmaceutical companies like Cipla, Torrent Pharma, and Sun Pharma.

Objectives of IAIRO

The core mission of the Indian AI Research Organization is to serve as a multidisciplinary national hub for AI. IAIRO aims to:

  • Advance AI research and development
  • Develop AI-based products and solutions
  • Strengthen collaborations among industry, academia, and government
  • Promote intellectual property (IP) creation
  • Support policy-oriented AI research
  • Build AI capacity and talent

Technology and Infrastructure

IAIRO will operate on a hybrid computing model that combines:

  • On-premise GPU-based high-performance computing
  • Integration with national digital platforms like the IndiaAI Cloud

This model ensures scalable computing power for cutting-edge AI research while optimizing costs and accessibility.

Alignment with National Policies

This initiative aligns closely with the India AI Mission of the Ministry of Electronics and IT and Gujarat’s AI Action Plan under its Science and Technology Department. Additionally, Gujarat has formed an AI Task Force to enhance AI governance, guided by the Chief Minister.

Why GIFT City?

GIFT City is recognized as India’s first operational smart financial and technology hub. It is designed to support:

  • Global financial services
  • Emerging technologies
  • Innovation-led institutions

Locating IAIRO in GIFT City offers access to world-class digital and physical infrastructure, proximity to fintech, pharma, and startup ecosystems, and enhanced international visibility with regulatory ease.

Frequently Asked Questions (FAQs)

Q1. What is the Indian AI Research Organization (IAIRO)?
Answer: IAIRO is a state-led AI research body in India, set to launch in 2026 at GIFT City, Gandhinagar, focusing on advancing AI research and development through collaboration.

Q2. How will IAIRO be funded?
Answer: IAIRO will have a total funding of ₹300 crore for its first five years, with equal contributions from the central and state governments and private partners.

Q3. What are the main objectives of IAIRO?
Answer: The main objectives include advancing AI research, developing AI products, promoting IP creation, and strengthening collaborations among industry, academia, and government.

Q4. Why is GIFT City chosen for IAIRO's location?
Answer: GIFT City offers world-class infrastructure, proximity to key industries, and an environment conducive to innovation, making it an ideal location for IAIRO.

Q5. How will IAIRO support policy-oriented AI research?
Answer: IAIRO aims to foster collaborations that support the development of AI policies, ensuring that research aligns with national and state AI missions.

UPSC Practice MCQs

Question 1: What is the primary purpose of the Indian AI Research Organization (IAIRO)?
A) To manage AI technology in India
B) To advance AI research and development
C) To regulate AI usage in industries
D) To promote AI education
Correct Answer: B

Question 2: How much funding is allocated for IAIRO in the first five years?
A) ₹200 crore
B) ₹300 crore
C) ₹400 crore
D) ₹500 crore
Correct Answer: B

Question 3: Which organization is NOT a part of the IAIRO establishment?
A) Government of Gujarat
B) Government of India
C) Indian Pharmaceutical Alliance
D) Indian National Congress
Correct Answer: D

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