Gujarat Launches Rs 1,000-Crore Fund to Boost AI and Semiconductor Sectors

Mar 2, 2026, 2:56 AM

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In a strategic move to enhance its technological landscape, the Gujarat government has announced a Rs 1,000-crore Swadeshi Anusandhan Fund. This fund aims to support local research in critical areas such as artificial intelligence (AI) and semiconductors, positioning the state as a leader in these high-tech sectors.

The announcement was made by Chief Minister Bhupendra Patel during the Gujarat SemiConnect Conference 2026. The fund is part of the newly unveiled Science, Technology & Innovation (STI) Policy 2026-2031, which is designed to facilitate over 100 high-impact research projects annually.

Focus Areas and Innovation Clusters

The Swadeshi Anusandhan Fund will anchor research initiatives across various frontier sectors including AI, semiconductors, quantum technologies, biotechnology, green energy, and defence technologies. Additionally, the policy includes plans to establish Gujarat Rajya Research & Innovation Clusters (GRRIC), which will serve as comprehensive networks for science and technology innovation. These clusters will begin in the Gandhinagar-Ahmedabad region and expand to other areas such as Vadodara and Surat.

Each cluster will provide advanced research and development hubs, featuring shared laboratories and testing facilities. The objective is to foster collaboration between industry and academia, facilitating knowledge exchange and speeding up the commercialization of innovations.

Nurturing Talent and Research Capacity

Recognizing that talent is vital for innovation, the Gujarat government aims to nurture 100,000 skilled researchers by 2030. This will be achieved through various initiatives, including fellowships for junior and senior researchers, specialized programs for women in innovation, and the launch of a unified Gujarat R&D portal. Furthermore, the policy emphasizes expanding STEM education and outreach to enhance scientific literacy across the state.

Global Competitiveness and Intellectual Property

To enhance Gujarat's competitiveness on a global scale, the government plans to establish over 200 Intellectual Property (IP) Facilitation Centres, targeting more than 1,000 IP filings each year, including at least 500 patents. The overarching goal is to cultivate a culture of innovation-led growth and deepen industry-academic collaborations.

The state government has committed to progressively increasing its STI expenditure to 1% of its Gross State Domestic Product (GSDP) by 2030. Additionally, it will mandate a 1% R&D allocation across state departments, leveraging Corporate Social Responsibility resources to support research and innovation ecosystems.

National Context and Semiconductor Initiatives

This local initiative aligns with broader national efforts to bolster the semiconductor sector. Recently, the Indian government announced a significant increase in semiconductor funding, allocating Rs 8,000 crore for FY2026-27 for the Modified Programme for Development of Semiconductors and Display Manufacturing Ecosystem. The India Semiconductor Mission 2.0 has also been allocated Rs 1,000 crore, emphasizing the government’s commitment to developing a robust domestic semiconductor industry.

The increased funding for the semiconductor sector complements Gujarat's efforts, which are crucial for reducing import dependence and strengthening domestic supply chains for critical technologies.

Conclusion

The establishment of the Rs 1,000-crore Swadeshi Anusandhan Fund reflects the Gujarat government's proactive approach to nurturing innovation in AI and semiconductor technologies. By investing in research, infrastructure, and talent development, Gujarat is positioning itself as a key player in the rapidly evolving tech landscape, aligning with national objectives to strengthen India's technological capabilities.

This initiative not only aims to spark advancements in deep-tech fields but also seeks to create a sustainable ecosystem that fosters innovation and economic growth in the region.

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