Health Minister Anbumani Ramadoss says he aims to cut the number of smokers and to protect passive smokers from the harmful effects of tobacco.
The government says India has more than 120 million cigarette smokers. Observers say the ban will need to be strictly enforced.
Those flouting it face fines of 200 rupees ($4.50). Tobacco smoking in India kills 900,000 people a year.
That figure is expected to rise to a million by 2010.
India's health ministry says hundreds of thousands of people who have never smoked die each year by inhaling smoke from other people's cigarettes and bidis (small hand-rolled cigarettes common in India).
"From 2 October India is going to go smoke-free in all public places," Mr Ramadoss said.
"The aim is to discourage the smokers, to make them quit or reduce smoking. Also all non-smoking employees have a right to a 100% smoke-free atmosphere.
"The perils of passive smoking are equally bad." More...
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