The Competition Commission of India’s (CCI) Market Study on Artificial Intelligence and Competition comes at a crucial moment in India’s digital evolution. With the country’s AI ecosystem growing rapidly driven by a thriving startup culture, ambitious government programs, and rising investor interest, this study brings to light a pressing question: how can artificial intelligence be harnessed to empower startups and MSMEs, while maintaining a fair, competitive, and inclusive digital marketplace?
India’s progress in AI so far has been promising. Startups are pushing the boundaries in areas such as natural language processing, computer vision, and predictive analytics. At the same time, initiatives like the India AI Mission are laying down the foundations for a strong public digital infrastructure. Capital both domestic and global is pouring into sectors ranging from healthcare and agriculture to logistics and fintech, fuelling innovation at scale. Yet, amid this momentum, the CCI’s study rightly flags a core concern: as a few global players come to dominate AI’s foundational layers, will smaller innovators be left behind?
A key focus of the study is the role of infrastructure providers offering cloud computing platforms, open-source frameworks, and foundational model APIs. These entities form the backbone of most applications today. Services from giants like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud have made scalable computing and AI tools more accessible than ever. Similarly, open-source frameworks like TensorFlow and PyTorch have allowed even early-stage startups to develop cutting-edge AI products without massive R&D budgets.
This democratisation of access has especially benefited India’s MSMEs and startup ecosystem. It use cases such as fraud detection, demand forecasting, supply chain optimisation, and personalised customer engagement once the domain of deep-pocketed corporations are now within reach for smaller players. However, this growing dependence on a limited number of global infrastructure providers raises important questions. The risk of vendor lock-in, opaque pricing models, and preferential access to tools or datasets could ultimately stifle competition. The CCI’s intention to monitor these dynamics is both timely and essential.
Beyond infrastructure, the study takes a holistic view of its market structures. It aims to understand the full AI value chain, including inputs, stakeholders, and the distribution of power within the ecosystem. By assessing both current and emerging challenges, the CCI seeks to ensure that competition law evolves in step with rapidly advancing technologies.
Another strength of the study lies in its comparative lens. By looking at how other jurisdictions are responding to related competition issues, the CCI is building a globally informed framework while keeping India’s unique needs in focus. This approach reflects a forward-thinking regulatory stance, one that is proactive rather than reactive. Importantly, the CCI has committed to engaging a wide set of stakeholders, including startups, infrastructure providers, domain experts, and policy think tanks. This inclusivity will be vital in shaping policies grounded in on-the-ground realities.
Equally noteworthy is the rise of indigenous Artificial Intelligence efforts. Companies like Krutrim and Sarvam are developing homegrown models and tools tailored to Indian languages, datasets, and business contexts. These domestic innovators are not merely building scalable solutions they are building solutions for India. Their work is particularly impactful for MSMEs operating in regional markets, who often need affordable, context-sensitive technologies. A strong indigenous ecosystem also reduces overreliance on foreign infrastructure, promoting technological sovereignty.
In this regard, the CCI’s study is more than a diagnostic it is a signal to act early. By engaging with emerging challenges while the Artificial Intelligence ecosystem is still taking shape, India has the opportunity to avoid the missteps seen in other digital sectors globally. This kind of foresight can help prevent future market failures, rather than scrambling to regulate them after damage is done.
India today stands at an inflection point. The transformative potential of Artificial Intelligence is undisputed, but ensuring that this transformation is equitable requires sustained commitment to openness, fairness, and inclusivity. Infrastructure, data access, and regulatory clarity must be shaped with an eye towards enabling not excluding smaller innovators. Platforms like the AI India Summit can play a crucial role in sustaining this dialogue and ensuring that all stakeholders, especially startups and MSMEs, have a voice in shaping the future.
Ultimately, the CCI’s intervention provides both a caution and a roadmap. It reminds us that competition and innovation are not at odds they can, and must, coexist. With the right policy frameworks and continued collaboration, India can build an ecosystem that is globally competitive, deeply inclusive, and uniquely Indian.