Microsoft Invests $17.5 Billion in India's AI Ecosystem: Ashwini Vaishnaw and Satya Nadella Discuss Technology Partnership

Union Minister Ashwini Vaishnaw engaged in discussions with Microsoft CEO Satya Nadella on Tuesday, focusing on artificial intelligence applications for public welfare, cutting-edge technologies, and the critical importance of data sovereignty.

The meeting, which took place in New Delhi, centered on strategies to enhance India's technological capabilities and utilize AI to strengthen governance systems and improve services for citizens.

Minister Vaishnaw shared details of the meeting on social media platform X, writing: "Met Microsoft CEO Mr. @satyanadella. Discussed the use of AI for public good, frontier technologies, and data sovereignty. Microsoft's landmark investment reflects India's rise as a reliable global technology partner. This partnership will drive the country's leap from digital to AI public infrastructure."

As the Union Minister of Electronics and Information Technology, Vaishnaw expressed strong support for the collaboration, noting, "As AI reshapes the digital economy, India remains committed to innovation anchored in trust and sovereignty. Microsoft's landmark investment signals India's rise as a reliable technology partner for the world. This partnership will set new benchmarks and drive the country's leap from digital public infrastructure to AI public infrastructure."

Prime Minister Narendra Modi also extended his welcome to Microsoft's substantial investment in India's AI ecosystem.

During the meeting, Satya Nadella announced Microsoft's plans to invest $17.5 billion in India to strengthen the country's AI infrastructure, marking the company's largest investment in Asia to date.

The tech giant will expand its existing data center regions in Chennai, Hyderabad, and Pune, enabling high-performance, low-latency services critical for enterprises, startups, and public institutions across the country.

Microsoft further revealed plans to integrate advanced AI tools into the Ministry of Labour and Employment's e-Shram and National Career Service platforms, with the potential to benefit more than 310 million informal workers. These enhancements, built on Azure OpenAI Service, will include multilingual support, AI-powered job matching, predictive analytics capabilities, and automated resume creation services.

On the skill development front, Microsoft announced it has doubled its commitment to train 20 million Indians in AI skills by 2030. Through the ADVANTA(I)GE India initiative, led by Microsoft Elevate, 5.6 million individuals have already received training since January 2025, resulting in over 125,000 job or entrepreneurial opportunities.

The company also introduced Sovereign Public Cloud and Sovereign Private Cloud solutions tailored for Indian customers, designed specifically to meet regulatory compliance requirements and data governance standards.

Additionally, Microsoft 365 Copilot will implement in-country data processing by the end of 2025, making India among the first global markets to access this capability.