Playing in his 187th test, he dismissed Kuldeep Yadav caught behind to become only the third bowler -- behind spinners Muttiah Muralitharan (800) and Shane Warne (708) - to reach that milestone. Anderson held the ball aloft while his teammates mobbed him.
The travelling 'Barmy Army' fans gave him a standing ovation as Anderson led his team off the field at the innings break at the picturesque Himachal Pradesh Cricket Association stadium.
Sri Lanka's Muttiah Muralitharan leads the all-time chart with 800 wickets from 133 tests, followed by Australia spin great Shane Warne (708).
India went on to win the test inside three days, completing a 4-1 series victory, but Anderson's landmark wicket brought some much-needed satisfaction to the tourists.
England captain Ben Stokes doffed his hat at his teammate.
"I've been there for quite a few of his milestones but 700 wickets as a seamer is phenomenal," Stokes said.
"Every young kid out there who wants to be a fast bowler should be looking up to him and trying to emulate everything that he does.
"He's 41 years old but as fit as I've ever seen him. I don't know when he's going to stop because he's still got so much desire and commitment and it's great to watch."
While Anderson is immensely skilful, his remarkable longevity, attributed to his smooth action, as a fast bowler continues to amaze the followers of the game.
"At the foothills of the Himalayas, James Anderson has reached the insurmountable summit for a fast bowler in test match cricket," former England bowler Steven Finn told the BBC.
"Nobody will ever take more than 700 test wickets as a fast bowler. He's a remarkable man and player and he's still going."
Indian batting great Sachin Tendulkar praised Anderson's "stellar achievement" on X, formerly known as Twitter.
"A fast bowler playing for 22 years and performing so consistently to be able to take 700 wickets would have sounded like fiction until Anderson actually made it happen ..." Tendulkar wrote.
Former England captain Alastair Cook also marvelled at the seamer's durability.
"I sat in a selection meeting 10 years ago and we were discussing ... when we were going to rest and rotate him because he can't keep playing all those test matches," Cook said on TNT Sports.
"His hunger to get better and win games of cricket for England is unbelievable.
"The physical challenges he has overcome to be able to play 190 test matches is a joke and his skill is a joke."
Anderson made his England debut in a one-day international against Zimbabwe in 2002 and played his first test five months later against Australia.
In his 22 years in international cricket, the Lancashire player has established himself as a complete bowler, who can make the ball talk with his command of swing bowling - both traditional and reverse.
