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India’s Finance Ministry Advises Employees to Avoid AI Tools Like ChatGPT and DeepSeek

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India’s finance ministry has issued an internal advisory urging employees to refrain from using AI tools, including ChatGPT and DeepSeek, for official work. The advisory, dated January 29, cites concerns over the potential risks to the confidentiality of government data and documents. The move follows similar restrictions by countries such as Australia and Italy, which have also raised concerns over data security with AI tools like DeepSeek.

The advisory surfaced ahead of OpenAI CEO Sam Altman’s visit to India, where he was scheduled to meet with India’s IT minister. The ministry’s note outlines the risks associated with using AI apps on government devices, which may compromise the security of sensitive information.

Representatives from the Indian finance ministry, OpenAI, and DeepSeek have not responded to requests for comment. While it is unclear if other Indian ministries have issued similar restrictions, the development is part of ongoing scrutiny of OpenAI’s activities in India, including a high-profile copyright case involving major Indian media organizations.

 

India Becomes OpenAI’s Second-Largest Market, Altman Reveals

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OpenAI CEO Sam Altman announced on Wednesday that India has become the company’s second-largest market by user base, with the number of users tripling over the past year. Altman met with India’s IT Minister Ashwini Vaishnaw to discuss India’s efforts to create a low-cost AI ecosystem. Altman praised India’s rapid AI adoption and its growing ambitions, emphasizing that the country should aim to lead the AI revolution.

Vaishnaw shared a post on X about his “super cool discussion” with Altman, focusing on India’s strategy to build a complete AI stack, including GPUs, models, and applications. OpenAI expressed interest in collaborating with India on all aspects of this strategy.

Altman’s comments marked a shift from his stance last year, when he questioned India’s ability to build a substantial AI model with a $10 million budget. He now supports India’s AI ambitions, calling for the country to become a leader in the field.

This visit to India comes as OpenAI faces legal challenges in the country. India’s finance ministry has also warned its employees against using tools like ChatGPT and DeepSeek for official work, citing confidentiality concerns. Despite these challenges, OpenAI continues to expand its global presence, with Altman also securing deals in Japan and South Korea during his recent travels.

 

India Cuts Import Tax on Key Smartphone Components, Boosting Apple and Xiaomi

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India has eliminated import duties on certain key components used in mobile phone production, as announced by Finance Minister Nirmala Sitharaman in the annual budget on Saturday. This move is expected to support local manufacturing efforts and benefit companies like Apple and Xiaomi. The electronics sector in India has seen significant growth, with production doubling in the last six years to reach $115 billion in 2024, making the country the second-largest mobile phone manufacturer globally.

Apple leads the Indian smartphone market, with a 23% share in total revenue for 2024, closely followed by Samsung at 22%, according to Counterpoint research. The components affected by the import tax cuts include items crucial for phone assembly, such as printed circuit board assembly, parts of camera modules, and USB cables, which were previously taxed at 2.5%.

These reductions are part of India’s strategy to strengthen its position in global supply chains amid challenges like U.S. President Donald Trump’s tariff threats and the shifting dynamics of U.S.-China trade tensions. India’s decision to lower tariffs comes as a response to warnings from the IT ministry, which noted that without these cuts, the country risked falling behind China and Vietnam in the smartphone export race. The changes aim to make India’s customs duty structure simpler and more trade-friendly, addressing issues like inverted duty structures that hinder efficient local production.