Gujarat is making a major push in artificial intelligence and the digital economy with two key initiatives. The state government has announced the development of a dedicated IT and AI cluster next to GIFT City in Gandhinagar and the launch of the Indian AI Research Organisation IAIRO. The organisation became operational on January 1, 2026. The twin projects aim to position Gujarat as a national and global hub for emerging technologies.
The government chose GIFT City over other locations such as Dholera SIR and Surat Dream City, citing its strong infrastructure and global profile. Officials said the new cluster will promote AI, IT, and IT enabled services in a more organised way. The earlier Infocity project did not meet expectations, so the state is now adopting a fresh strategy focused on scale, partnerships, and policy support.
P Bharathi, Secretary of the Department of Science and Technology, said, “As part of several policy initiatives, we decided to develop a GIFT City like, dedicated major cluster for AI, IT and related emerging technologies. It will be located beside GIFT City.” She added that global tech firms will be invited with customised incentives and full government support.
The state is preparing to notify land near GIFT City for the Gujarat IT AI City. A dedicated policy framework is expected in the March budget.
The government has also relaxed liquor rules at GIFT City. Non resident visitors can now consume alcohol by showing a valid photo ID without a special permit. Employees with permits can host up to 25 guests. They can now apply directly without HR approval. A source said, “Earlier, employees were required to take authorisation from company HR, which is no longer needed.” Liquor service will also be allowed across hotel and restaurant premises with valid licences.
Gujarat plans to invite one or two global tech leaders as anchor investors. The roadmap includes seven IT parks in tier two and tier three cities, a cable landing station, and a large green data centre. A global campaign called Invest in Digital Gujarat will support this push.
The state will also roll out the Future Skills Gujarat Mission, along with incubators, accelerators, venture funding, and international trade corridors.
Chief Minister Bhupendra Patel has approved IAIRO under a public private partnership model. It will function as a non profit entity and receive Rs 300 crore over five years. The organisation will act as a national hub for AI research, product development, policy support, and capacity building.
Officials believe these steps will help Gujarat lead India’s AI and digital transformation.
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