On January 7, 2025, Microsoft Chairman and CEO Satya Nadella announced the company’s plan to invest US $3 billion in India over the next two years. This investment will focus on cloud and AI infrastructure, as well as skilling initiatives, including the establishment of new data centers.
The goal of this investment is to “accelerate AI innovation in India,” a key component of Prime Minister Narendra Modi’s vision of transforming India into a developed nation, Viksit Bharat, by 2047. Microsoft also plans to enhance the “country’s long-term competitiveness by training 10 million people,” in AI skills over the next five years, as part of the second edition of its ADVANTA(I)GE India program, according to a statement from the company.
On January 6th, Nadella met PM Modi, in New Delhi to inform him of Microsoft’s plans. PM Modi expressed his enthusiasm about the company’s ambitious expansion and investment plans in India. The two also discussed various aspects of technology, innovation, and AI during their meeting, according to a statement from the Prime Minister’s Office.
Nadella, currently visiting India, remarked, “India is rapidly becoming a leader in AI innovation, unlocking new opportunity across the country. The investments in infrastructure and skilling we are announcing today reaffirm our commitment to making India AI-first, and will help ensure people and organizations across the country benefit broadly.”
“In the last 12 months Microsoft has been a copilot to making AI a reality in India, taking it from boardrooms to classrooms, commerce to communities, and finance to farmers. Today’s announcement strengthens our belief in India’s potential and our resolve to equip the country with the resources and future-ready skills needed to excel in the global marketplace,” added President, Microsoft India and South Asia, Puneet Chandok. “We will continue to use AI to unlock possibilities for the next few decades and ensure communities across the country have access to the compute they need to prosper in the AI era.”
AI for India: Advancing Skilling, Infrastructure, and Startups
Microsoft’s responsible AI approach is built on six core principles: fairness, reliability and safety, privacy and security, inclusiveness, transparency, and accountability. As a leader in AI, Microsoft is committed to expanding access to its technology, enabling organizations and individuals to use AI for public good. The company will operate its AI services under its AI Access Principles and responsible AI guidelines.
Additionally, Microsoft is expanding its cloud and AI infrastructure in India, with three existing data center regions and a fourth planned for 2026. This investment aims to create a scalable AI ecosystem to support the growing AI start-up and research communities in the country.
Microsoft noted that AI is becoming a vital skill for professionals, and Indian workers are leading the way in adopting and learning it. On LinkedIn, Indian professionals spend nearly 50 per cent more time on skill-building each week than the global average. The number of Indian users adding AI skills to their profiles has risen by 122 per cent year-over-year, far outpacing the global growth of 71 per cent.
Empowering India’s Workforce: Microsoft to Train 10 Million in AI Skills by 2030
Microsoft launched the ADVANTA(I)GE India initiative, in 2024, aiming to train two million people in AI skills by 2025. This target was exceeded ahead of schedule, with 2.4 million trained in under a year. Especially, “65 per cent of participants were women, and 74 per cent hailed from tier II and III cities,” ensuring widespread access, the statement added. Microsoft’s new goal is to equip 10 million more Indians with AI skills by 2030, with training partnerships across the government, nonprofit, and corporate sectors as part of their Global Skills for Social Impact initiative.
Minister of State (Independent Charge), Ministry of Skill Development and Entrepreneurship, Jayant Chaudhary, said, “India’s vibrant youth and tech talent are key to shaping the future of AI. Through the ‘AI for India’ mission, we aim to empower citizens with cutting-edge AI skills, driving innovation, creating jobs, and bridging the digital divide,” adding “Collaborations with global leaders like Microsoft and similar companies are pivotal in this transformation. By equipping our workforce, especially women and youth, with advanced skills, we are building an AI-ready India, poised for digital leadership and sustainable economic growth.”
Shaping the Future: AI, Startups, and Skilling at the Core of Microsoft’s India Expansion
On January 7th, Microsoft Research (MSR) Lab announced the launch of its AI Innovation Network in India to enhance the AI ecosystem. This initiative aims to foster new partnerships, particularly with digital-native companies, to transition research into practical business solutions.
MSR India has already partnered with Physics Wallah on math reasoning and is engaging with other digital-native companies on areas like causal inference, Indic LLM optimization, prompt optimization, and reinforcement learning.
Prateek Maheshwari, co-founder, Physics Wallah said, “At Physics Wallah, we’ve always believed in the power of technology to transform education. Our collaboration with Microsoft Research is a step towards creating tools that understand and support each student’s learning journey. By combining our expertise with Microsoft’s advancements in AI and Large Language Models, we’re working to make education more accessible, personalized, and impactful. We’re working together to help and empower students in meaningful ways.”
Additionally, Microsoft signed an AI-focused Memorandum of Understanding (MoU) with SaaSBoomi, a leading community for B2B startups in India. This collaboration will help boost India’s AI and SaaS sectors, contributing to its trillion-dollar economy by leveraging SaaSBoomi’s network and Microsoft’s tech expertise.
The partnership’s goals include impacting over 5,000 startups, upskilling 150,000 employees, creating 200,000 jobs, and attracting $1.5 billion in venture capital funding over five years. The initiative will also aim to nurture more than 50 unicorns and soonicorns, driving innovation and sustainability in India’s regional and technological development.
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