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Economic Times Tech
Economic Times Tech
6/29/2026
Indian enterprises shift to Chinese open-source AI models as cost-effective alternative

Indian enterprises shift to Chinese open-source AI models as cost-effective alternative

Original: Alternatives to OpenAI, Anthropic: With US prime AI off the table, India opts for fine China

Short summary

Indian enterprises and startups are rapidly shifting toward Chinese open-source AI models as cost-effective alternatives to US-based solutions from OpenAI and Anthropic. BCG experts characterize this as a pragmatic business decision driven by economics and supply-chain resilience, not political factors. This market trend could significantly reshape India's AI vendor landscape and accelerate adoption of non-US AI models across the enterprise sector.

  • India's enterprises adopting Chinese open-source models to reduce dependency on US AI providers
  • Market shift framed as economically pragmatic, not geopolitically motivated
  • Potential acceleration of non-US vendor adoption across Indian startups and enterprises

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