NEW DELHI: Big billions are flowing into the Indian tech sector. Weeks after Google announced a $15 billion AI hub and data centre plan, Microsoft has announced a fresh $17.5 billion (nearly Rs 1.6 lakh crore) investment in India with global CEO Satya Nadella outlining an intent to augment cloud and AI infrastructure in the country as well as expand skilling and ongoing operations during a meeting with PM Narendra Modi on Tuesday.
This announcement is Microsoft's biggest-ever investment in the Asian region and displays the importance of India in the company's global strategy. The fresh funds come on top of the $3 billion announced at the start of the year and takes the company's committed investments for India to $20.5 billion (over Rs 1.8 lakh crore) in the next four years.
India is emerging as a frontier AI nation: MS
After meeting PM, Nadella said on social media, "Thank you, PM @narendramodi ji, for an inspiring conversation on India's AI opportunity. To support the country's ambitions, Microsoft is committing US$17.5B - our largest investment ever in Asia - to help build the infrastructure, skills, and sovereign capabilities needed for India's AI first future," .
Modi responded to Nadella's message, and said the world has a focus on India when it comes to AI. "When it comes to AI, the world is optimistic about India! Had a very productive discussion with Satya Nadella. Happy to see India being the place where Microsoft will make its largest-ever investment in Asia. The youth of India will harness this opportunity to innovate and leverage the power of AI for a better planet."
Microsoft said India is emerging as a frontier nation as far as AI is concerned. "India stands at a pivotal moment in its AI journey, one defined by impact at scale, determined to lead. As technology becomes a catalyst for inclusive growth and economic transformation, the country is emerging as a frontier AI nation." The company said it sees the investments in India poised to set new benchmarks and drive the country's leap from digital public infrastructure to AI public infrastructure in the coming decade. "We are shaping a future that is more equitable and uniquely Indian in its scale and impact."
Puneet Chandok, the President of Microsoft India and South Asia, said the investments represent India's AI moment.
IT and electronics minister Ashwini Vaishnaw said that as AI reshapes the digital economy, India remains committed to innovation anchored in trust and sovereignty.
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