India’s Competition Commission releases its first comprehensive study on the AI ecosystem, highlighting opportunities for inclusion and the need for adaptive regulation to foster fair competition in the fast-evolving digital landscape.
In recent years, Artificial Intelligence (AI) has transitioned from an emerging technology to a critical driver of economic growth and industrial transformation in India. The rapid expansion of AI’s capabilities now influences not only decision-making processes but also product design and competitive dynamics within markets across the country. Recognizing this profound shift, the Competition Commission of India (CCI) initiated a comprehensive market study in April 2024, culminating in a report released on October 6, 2025. This study represents the first systematic analysis of the AI ecosystem’s competitive landscape, examining development, deployment, and use, and aims to balance innovation facilitation with the preservation of fair competition.
AI’s influence permeates multiple sectors such as healthcare, banking, logistics, and retail, where it is used for demand forecasting, fraud detection, automation, and personalised user experiences. Globally, the AI market was valued at approximately USD 186 billion in 2024, with projections suggesting a surge to over USD 1 trillion by 2031. India mirrors this expansive trajectory, with its domestic AI market growing from USD 3.2 billion in 2020 to USD 6 billion in 2024, and anticipated to reach USD 32 billion by 2031. These figures reflect not only increased technology uptake but also significant domestic innovation and a skilled workforce. The Stanford AI Index Report 2025 places India among the leading nations globally for AI skills penetration, underlining its substantial human capital foundation.
Despite these promising trends, the CCI’s market study highlights structural imbalances within the AI ecosystem, noting dominance issues in both upstream AI technology development and downstream application deployment. This points to potential anti-competitive behaviours across the AI value chain, prompting the need for bolstered infrastructure and policy frameworks to support a more robust and diverse AI startup culture in India.
Importantly, the CCI’s findings cast AI as a democratizing force rather than a threat to market equality. The study reveals that about 76% of Indian AI startups rely on open-source technologies, illustrating how AI tools can lower entry barriers and empower smaller enterprises to compete effectively against incumbent firms. This challenges narratives positioning AI as a technology that fosters concentration; instead, AI is framed as a lever for inclusion when ecosystems remain open and contestable. For example, micro and small businesses can now utilise accessible AI-driven tools for credit scoring, demand estimation, and customer management, thereby bridging previous resource gaps.
To foster a competitive and innovation-driven AI ecosystem, the CCI proposes a flexible, forward-looking regulatory blueprint. Among its strategic recommendations is the introduction of self-audits for firms developing AI systems, aimed at identifying and mitigating risks that could violate competition norms. The study further underscores the necessity of AI transparency frameworks, enhanced internal capacity within the CCI, and improved access to essential public resources such as open-source tools, affordable computing infrastructure, data sets, and skills development programmes. Such measures signify a move towards adaptive regulation prioritising dialogue, co-regulation, and continuous learning over rigid enforcement, recognising the fast-evolving nature of digital markets.
A critical facet of the report is its emphasis on strengthening the institutional capacity of the CCI. It advocates for the enhancement of technical expertise in AI, machine learning, and self-learning models, coupled with the establishment of a dedicated think tank to provide ongoing research and policy insights. This internal augmentation aims to equip the CCI with the tools necessary to interpret novel market behaviours shaped by AI and to apply competition principles effectively. These recommendations resonate with conclusions from the Committee on Digital Competition Law, which also called for specialised monitoring and analytical capabilities to address challenges like algorithmic collusion and network effects in digital markets.
The market study’s release is a foundational step toward operationalising a competitive framework tailored to AI’s unique characteristics. Future implementation will require coordinated efforts among the CCI, the Ministry of Corporate Affairs, the Ministry of Electronics and Information Technology (MeitY), and relevant industry stakeholders. Establishing evidence-backed “theories of harm” specific to AI-related anti-competitive practices will be crucial for ensuring enforcement is consistent and proportionate. As the AI ecosystem transcends national borders, India’s competition policy must also engage with global regulatory dialogues to safeguard equitable access to computing resources, data, and foundational AI models.
This initiative represents a forward-thinking milestone in the evolution of India’s competition law as it pertains to digital innovation. It seeks not to stifle AI advancement but to cultivate an environment where innovation thrives alongside fairness and resilience. By championing transparency, institutional capacity-building, and a market-aligned approach, India positions itself as a potential global leader in responsible AI governance.
As AI increasingly permeates the fabric of the global economy, India faces the challenge of maintaining market openness while preventing undue concentration. The CCI’s market study provides a preliminary but vital blueprint for India’s digital competition policy, prioritising fairness, inclusion, and sustainable growth at its core. The recommendations invite continued collaboration and refinement, marking the beginning of an adaptive regulatory journey rather than a fixed conclusion.
📌 Reference Map:
- [1] (Deccan Chronicle) – Paragraphs 1, 2, 3, 4, 5, 6, 7, 8, 9, 10
- [2] (Competition Commission of India) – Paragraphs 1, 2
- [3] (Reuters) – Paragraph 2
- [4] (Reuters) – Paragraph 2
- [7] (Academic Paper) – Paragraph 3, 4
Source: Noah Wire Services
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
10
Notes:
The narrative is based on a press release from the Competition Commission of India (CCI) dated October 6, 2025, which is the earliest known publication date for this content. The Deccan Chronicle article was published on November 26, 2025, indicating that the content is fresh and not recycled. As the narrative is based on a recent press release, it warrants a high freshness score. No discrepancies in figures, dates, or quotes were found between the press release and the article. The article does not include updated data but recycles older material. Therefore, the freshness score remains high. ([cci.gov.in](https://www.cci.gov.in/public/index.php/antitrust/press-release/details/576?utm_source=openai))
Quotes check
Score:
10
Notes:
The article does not contain any direct quotes. Therefore, no issues related to reused or varying quotes are present. The absence of quotes suggests that the content is potentially original or exclusive.
Source reliability
Score:
10
Notes:
The narrative originates from the Competition Commission of India (CCI), a reputable government organisation. The Deccan Chronicle is a well-established news outlet in India. Therefore, the sources are reliable.
Plausability check
Score:
10
Notes:
The claims made in the narrative are plausible and align with known developments in India’s AI sector. The CCI’s market study, released on October 6, 2025, is a credible source for the information presented. The narrative is consistent with other reputable outlets’ coverage of the topic. The language and tone are appropriate for the subject matter and region. No excessive or off-topic details are present, and the tone is consistent with typical corporate or official language.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The narrative is based on a recent press release from the Competition Commission of India, published on October 6, 2025, and reported by the Deccan Chronicle on November 26, 2025. The content is fresh, original, and sourced from reputable organisations. The claims are plausible and consistent with other reputable outlets’ coverage. Therefore, the overall assessment is a PASS with high confidence.
