AI, IT and yes, booze too: Gujarat’s big GIFT City push | Ahmedabad News

Gujarat is launching a major push into AI and the digital economy with a dedicated IT-AI cluster near GIFT City and the establishment of the Indian AI Research Organisation (IAIRO)

GANDHINAGAR: Gujarat is betting big on artificial intelligence and the digital economy. The state government has unveiled a wide-ranging plan to strengthen its technology ecosystem, including the creation of a dedicated IT–AI cluster next to GIFT City in Gandhinagar and the establishment of the Indian AI Research Organisation (IAIRO), which became operational on January 1, 2026.The twin initiatives aim to boost the state’s digital economy and position Gujarat as a national and global hub for emerging technologies.

Dedicated IT–AI cluster beside GIFT CityAs part of its digital economy push, Gujarat will develop a specialised cluster for information technology (IT), information technology-enabled services (ITES), and artificial intelligence (AI) adjacent to GIFT City. Dholera Special Investment Region (SIR) and Surat Dream City were also considered as potential locations. The government ultimately chose GIFT City, citing its existing infrastructure and global positioning.

Officials said the new cluster is designed to promote the AI, IT, and ITES sectors in a more organised and dynamic manner, after the earlier Infocity project failed to deliver the desired outcomes. This time, the government has opted for a fresh approach focused on scale, global partnerships, and strong policy support.P Bharathi, Secretary of the Department of Science and Technology (DST), said the government has adopted a multidimensional strategy to develop the AI and IT/ITES sectors.“As part of several policy initiatives, we decided to develop a GIFT City-like, dedicated major cluster for AI, IT/ITES and related emerging technologies. It will be located beside GIFT City,” she said.Bharathi added that the government plans to directly engage with global technology companies, invite them to set up operations in the cluster, and offer tailor-made incentives.“We plan to reach out to global tech giants, invite them to this cluster, offer customised incentives, and provide all necessary support to develop this emerging sector in Gujarat,” she said.The government is in the process of notifying a new land parcel near GIFT City for the proposed Gujarat IT–AI City. A customised policy framework for the cluster is expected to be announced in the upcoming state budget in March.GIFT City relaxes liquor rules for visitors and employeesThe Gujarat government eased liquor norms at the Gujarat International Finance Tec (GIFT) City.The new rules allow easier access to alcohol for non-resident visitors, including people from other states and foreign nationals. The notification formally recognises ‘external persons’ as “a person who is not from the state of Gujarat, who holds a photo ID card of another state, or who is a foreign national.”

Under the new norms, such visitors can consume alcohol simply by presenting a valid photo ID, without needing a liquor access permit—a significant change from the controlled relaxation framework introduced in December 2023.Employees with liquor access permits can now host up to 25 guests at a time, while diners without permits can freely access wine-and-dine areas for food. Employees can also obtain a liquor access permit directly with their ID cards by submitting Form A1, eliminating the earlier requirement for HR approval.“Earlier, employees were required to take authorisation/approval from company HR, which is no longer needed. An employee can get his permit and host up to 25 guests without extra approvals,” a source close to the development said.“Additionally, the company will no longer be held responsible for the employee who leaves GIFT City without submitting his permit,” the source added.The updated rules also allow liquor service across hotel and restaurant premises—including lawns, poolside areas, terraces, and private hotel rooms—provided the outlet holds an FL-III licence. Previously, alcohol was allowed only in designated ‘wine and dine’ zones for employees with special permits.Implementation roadmapGujarat plans to invite one or two of the world’s top IT companies as anchor investors, offering high-end incentives covering land, infrastructure, taxation, and regulatory compliance.

Infrastructure development will include:

To promote investment, the government will launch a global campaign titled ‘Invest in Digital Gujarat’, set up a single-window investor facilitation cell with dedicated account managers, and form a Gujarat Global and Domestic IT Leadership Network.Institutional and policy measures will include amendments to IT/ITES and Global Capability Centre (GCC) policies, the launch of a new Science, Technology and Innovation (STI) Policy and a State Digital Growth Framework, and the introduction of export-linked incentives and market-access programmes.The state will also launch the ‘Future Skills Gujarat Mission’ to support talent development, alongside regional incubators, accelerators, venture funding, and international digital trade corridors to boost innovation and startups.Global tech firms as anchor units

Government sources said the state aims to invite one or two of the world’s top 10 technology conglomerates as anchor units for the IT–AI City. Companies that may be approached include Microsoft, Amazon, Google, IBM, Meta, Oracle, and SAP.High-end incentive packages will cover land allocation, infrastructure support, taxation benefits, and flexibility in regulatory compliance. Officials said the objective is to attract large-scale investments and build a strong technology ecosystem around these anchor companies.IT parks, digital infrastructure, and investor support

Seven integrated IT parks in tier-2 and tier-3 cities are planned to spread technology-led growth beyond major urban centres and generate employment across the state.Digital infrastructure will be strengthened through a cable landing station and a large-scale green data centre to support high-speed connectivity, cloud services, and data-intensive AI operations.Policy reforms to support IT and AI growth

Officials said existing IT/ITES and GCC policies will be strengthened to attract investments into Gujarat IT–AI City. The state will also introduce a new STI Policy and State Digital Growth Framework, along with export-linked incentives and market-access programmes to boost IT/ITES exports.Skilling, innovation, and startup ecosystemThe Future Skills Gujarat Mission will focus on preparing a workforce skilled in AI, digital, and emerging technologies.The government will also support innovation and startups by establishing regional incubators and accelerators, providing venture funding, mentorship, and industry linkages, and creating international digital trade corridors with global technology leaders.Indian AI Research Organisation approvedChief minister Bhupendra Patel has granted in-principle approval for the establishment of the Indian AI Research Organisation (IAIRO) at GIFT City. IAIRO is designed to strengthen AI research and accelerate India’s national AI ecosystem under the guidance of the Prime Minister and the chief minister.

IAIRO will be set up through a tripartite public–private partnership involving the Gujarat government, the Government of India, and the Indian Pharmaceutical Alliance (IPA). Gujarat becomes the first state in India to establish such an institution under a PPP model.The organisation will operate as a Special Purpose Vehicle (SPV) registered as a non-profit entity under Section 8 of the Companies Act, 2013. It is scheduled to be fully operational from January 1, 2026.Funding and role of IPAAn estimated Rs 300 crore has been earmarked for IAIRO’s first five years, with the Gujarat government, the Central government, and the private partner each contributing one-third.The Indian Pharmaceutical Alliance, representing 23 leading pharma companies including Cipla, Torrent Pharma, and Sun Pharma, will act as the anchor private partner, contributing Rs 25 crore during the 2025–26 financial year.National and state AI alignmentIAIRO aligns with the India AI Mission of the Union Ministry of Electronics and Information Technology and Gujarat’s AI Action Plan. An AI Task Force will also be constituted to use AI for improving healthcare, education, agriculture, and public services.Mandate and infrastructure of IAIROIAIRO will function as a multidisciplinary national hub for AI research, development of AI products, and collaboration among academia, industry, startups, and government agencies.It will also focus on intellectual property creation, capacity building, and policy research, operating on a hybrid compute model that combines on-premise GPU infrastructure with national platforms such as the IndiaAI Cloud.Strategic importance of GIFT City

By situating both the IT–AI cluster and IAIRO at GIFT City, Gujarat aims to leverage world-class infrastructure, regulatory ease, international visibility, and proximity to fintech, pharma, and startup ecosystems.Officials said these initiatives will help build a strong AI talent pipeline, strengthen India’s sovereign AI capabilities, and reduce dependence on a limited number of global technology providers. The IT–AI cluster is expected to attract global investments and create large-scale employment.Gujarat’s government believes these efforts will place the state at the forefront of India’s AI and digital transformation journey and establish it as a global hub for emerging technologies(With inputs from Kapil Dave)