The order comes in the context of OpenAI CEO Sam Altman’s visit to India, where he met with Prime Minister Narendra Modi.
The Indian Finance Ministry has directed six departments to avoid using AI tools, including ChatGPT and DeepSeek, on official devices. This is due to concerns over data confidentiality. An internal communication from the Expenditure Department, dated January 29, raised concerns. It stated that AI tools on office computers could compromise government data security. The advisory received approval from the Finance Secretary. It was then circulated to the secretaries of the revenue, economic affairs, expenditure, public enterprises, DIPAM (Department of Investment and Public Asset Management), and financial services departments.
The communication is for internal use within the Finance Ministry. It is unclear whether other central government ministries or departments have issued similar notifications. Countries like Australia and Italy have also imposed similar restrictions on DeepSeek, citing data security concerns.
This advisory comes as India prepares to launch its own secure and affordable AI model. Last month, Union Minister Ashwini Vaishnaw highlighted the timeliness of the initiative, positioning India as a trusted nation globally. He emphasized that it will strengthen India’s standing as a reliable technological powerhouse for ethical AI solutions in the future.
The advisory came out just before Altman’s meeting with IT Minister Ashwini Vaishnaw on Wednesday. Altman mentioned that India’s role in AI is growing, highlighting that the country is OpenAI’s second-largest market.
His comments came as Chinese competitor DeepSeek entered the market, and they contrasted with his earlier 2023 statement, where he had described India’s chances of developing competitive AI models as “hopeless.”
The India AI mission, supported by a state-of-the-art computing facility, is closer to developing AI solutions suited to India’s needs, including local languages. The Minister mentioned that scientists, researchers, developers, and coders are working on multiple foundational models. With the current progress, he is confident the Indian AI model will be ready within six months.
In just 10 months since the launch of the India AI Mission, the IT Ministry has received an unprecedented response, successfully establishing a cutting-edge, robust common computing facility with approximately 18,693 Graphic Processing Units (GPUs). This is nearly nine times the capacity of the Open Source Model DeepSeek and about two-thirds of what ChatGPT has. In response to media queries, the Union Minister stated that DeepSeek could be hosted on Indian servers after security checks. This would allow coders, developers, and designers to use its open-source code.
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