Microsoft Corp. on Tuesday announced a historic investment of $17.5 billion (approximately Rs 1.5 lakh crore) in India, aiming to develop the country’s artificial intelligence infrastructure, skills, and sovereign capabilities. The announcement came after a meeting between Microsoft Chairman and CEO Satya Nadella and Prime Minister Narendra Modi.
The investment will focus on scaling cloud and computing infrastructure, expanding AI skilling initiatives, and supporting secure, sovereign data systems across sectors. Nadella described it as “our largest investment ever in Asia,” intended to propel India toward an AI-first future.
This new commitment builds on Microsoft’s $3 billion investment announced earlier in January 2025, aimed at strengthening AI and cloud capabilities over the next two years. The company also plans to train one crore people in AI skills over the next five years, supporting India’s long-term competitiveness.
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In 2024, Microsoft had launched the ‘ADVANTA(I)GE India’ initiative to equip professionals and students with AI capabilities. The new investment will significantly expand these efforts, covering diverse sectors and creating opportunities for large-scale workforce development in emerging technologies.
Tech giants are increasingly betting on India as a hub for AI innovation. Amazon, for example, has committed $12.7 billion toward local cloud and AI infrastructure, aiming to benefit 15 million small businesses by 2030, and train four million government-school students in the next five years.
Experts say Microsoft’s investment could accelerate India’s position in the global AI landscape, supporting startups, public sector modernization, and the country’s digital sovereignty initiatives. With these developments, India is poised to become one of the fastest-growing AI markets in the world.
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