Why India Matters for OpenAI
OpenAI, the creator of ChatGPT, is cementing its presence in one of its most important markets by opening its first Indian office in New Delhi later this year. Backed by Microsoft, the company has formally registered as a legal entity in India and already begun local hiring.
For OpenAI, India offers a unique combination: a vast population of nearly one billion internet users, a rapidly growing developer ecosystem, and strong government support through the IndiaAI Mission. With student usage surging and developers among the most active globally, India provides both a massive consumer base and an innovation hub.
India: A Growth Engine for ChatGPT
India has emerged as ChatGPT’s second-largest market after the United States, and one of its fastest expanding. According to new OpenAI data, the number of weekly active users in India has quadrupled in just a year. Students form the largest cohort of users worldwide, relying on ChatGPT for study assistance, interactive learning, and personalised tutoring.
India is also among the top five global developer communities for OpenAI tools, underscoring its importance not just as a market for consumption but as a center of creation.
Tailored for India: Affordable Plans and Local Payments
Acknowledging the need for affordability, OpenAI recently launched its lowest-priced subscription globally—ChatGPT Go, an India-exclusive plan costing ₹399 ($4.60) per month. Integrated with UPI payments, the plan offers expanded usage, including the ability to send more prompts and generate images beyond free limits.
For advanced users, OpenAI provides ChatGPT Plus at ₹1,999 per month and ChatGPT Pro at ₹19,900 per month, which deliver priority access, faster performance, and higher output volumes. The pricing strategy reflects the company’s recognition that India’s AI adoption hinges on cost-effective access.
Building for India: Education and Language Initiatives
OpenAI is also investing in education and AI literacy. CEO Sam Altman announced the launch of an OpenAI Academy for India in collaboration with the Ministry of Electronics and IT. This initiative aims to broaden AI awareness while equipping students and professionals with skills to use AI responsibly.
In line with this, ChatGPT’s latest model, GPT-5, now demonstrates far stronger comprehension of Indian languages, from Hindi and Tamil to Bengali and Marathi. This enhancement ties directly to the “AI for India” initiative, ensuring that local communities benefit in their own languages rather than being confined to English.
The company has also rolled out a Study Mode tailored for India’s student-heavy user base. The tool provides step-by-step answers, interactive questioning, and personalised guidance—positioning ChatGPT as an educational companion rather than just a chatbot.
Upcoming Events: Engaging India’s Ecosystem
OpenAI’s India strategy is not confined to digital tools. The company plans to host its first Education Summit in August and Developer Day later this year, bringing together students, startups, enterprises, and developers. These events are designed to cultivate collaboration and promote AI solutions “built in India, for India.”
By anchoring itself physically in New Delhi, OpenAI hopes to deepen ties with local talent and stakeholders, ensuring that its technology is shaped with input from those using it most intensively.
Government Backing and Partnerships
The Indian government has warmly welcomed OpenAI’s move. Union IT Minister Ashwini Vaishnaw hailed the decision as proof of India’s growing leadership in AI and digital innovation. “With strong investments in digital infrastructure and talent, India is uniquely positioned to drive the next wave of AI-led transformation,” he said, while inviting OpenAI to play a role in the IndiaAI Mission.
This mission, which has also enlisted domestic startups like Sarvam AI, seeks to create large language models specifically for Indian languages and contexts. From translation tools to educational chatbots, the goal is to develop inclusive AI applications that reflect India’s linguistic and cultural diversity.
Challenges: Legal Scrutiny and Market Competition
OpenAI’s India debut is not without challenges. News publishers and book houses have accused the company of using copyrighted material without consent to train ChatGPT. OpenAI has denied these claims but continues to face legal uncertainty.
Competition is also intensifying. Google’s Gemini and U.S.-based Perplexity have made aggressive inroads, with the latter even bundling its services free with Airtel connections. These moves reflect the strategic importance of India’s AI market, where capturing user loyalty early could shape long-term dominance.
A Defining Step for AI in India
By opening its first India office, OpenAI is signaling that its ambitions go beyond global reach—it wants to embed itself in India’s AI journey. The combination of an enormous digital population, strong developer base, and government support makes India a natural partner in shaping AI’s future.
Yet success will hinge on navigating competition, addressing intellectual property disputes, and delivering tangible value across education, business, and governance. If OpenAI can balance innovation with trust and inclusion, its New Delhi office could mark not just an expansion, but a transformation in how AI is built with India—and for India.
(With agency inputs)
