The unseeded French player, ranked 89, tamed big-serving Anderson, ranked 14 in the world, 7-6(4) 62 in the summit clash, watched by a packed house at Balewadi Sports Complex.
Simon, who was ranked six in the world at one stage in his career, had knocked out defending champion and third seed Roberto Bautista Agut before shocking top seed and world number six Marin Cilic en route the final.
It is the first title for Simon, since his win at Marseille in February 2015.
Anderson, the 2017 US Open finalist, struggled to execute his big serve consistently. His poor returns even on a humble service, sometimes even below 150km speed from Simon, made his job tough as unforced errors continued to flow from his racquet in the one-hour 36-minute match.
With Simon controlling the pace of the game with his superb returns, long rallies were the order of the day. The longest game in the opening set was the fourth when Simon went down 0-40 but saved four break chances after five deuce points.
Two service return winners by Simon made it deuce but Anderson wriggled out of tight situation by winning consecutive points. However, he was not spared in the seventh with Simon finding an exceptional forehand winner on the second breakpoint.
Despite not having a big serve, the Frenchman did not lose a single point on his serve in the sixth and eighth games and the break in between put him ahead 5-3.
Both the players held the next two games easily, forcing a tie-breaker.
Simon trailed 1-3 in the tie-breaker but soon led 6-4 and nailed the set with a forehand winner which he produced after a sensational 39-shot rally.
Anderson saved three break points in the second game of the second set but an unrelenting Simon broke his rival in the sixth and eighth to seal the win.
Simon lost only three points in his four service game in the second set while Anderson continued to struggle with his errors. His misery finally ended when he hit a backhand wide to give Simon his first title win of the season.
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