Skilling half a million people by 2026, $3 billion investment: Microsoft expands AI footprint in India

Microsoft Chairman and CEO Satya Nadella has unveiled a series of AI-driven strategic partnerships with the Government of India and major industry players, furthering the country’s AI and cloud ecosystem. The announcement follows Microsoft’s commitment to invest $3 billion in cloud and AI infrastructure in India over the next two years, including the establishment of new data centres.

This initiative aims to enhance productivity, efficiency, and accessibility while positioning India as a global leader in AI innovation.

“The world is looking to India’s leadership in AI,” said Puneet Chandok, President of Microsoft India and South Asia. “Our partners like RailTel, Apollo Hospitals, Bajaj Finserv, Mahindra Group, and upGrad are driving the country forward with AI. At Microsoft, we are humbled by the confidence placed in our cloud and AI solutions like Microsoft Copilot. We are excited to work closely with the government to extend the benefits of the India AI mission to every corner of the country and democratise access to technology and resources.”

"At Mahindra Group, we see technology as a catalyst for impactful change across industries and communities. Our partnership with Microsoft accelerates our vision to transform automotive, farming, and financial solutions through advanced AI. With our AI Division and close collaboration with Microsoft, we’re driving a new era of innovation—making our products smarter, services more intuitive, and customer experiences richer. This alliance reaffirms Mahindra’s commitment to building a sustainable, inclusive future powered by technology.," said Dr Anish Shah, Group CEO & Managing Director, Mahindra Group.

"Bajaj Finance has always been an early adopter of technology. With the world on the threshold of an AI revolution, we are pivoting to a FinAI company by embracing AI-driven transformation. With our partnership with Microsoft, AI will integrate into our existing cloud, data, and digital infrastructure, resulting in sustained growth, lower costs, improved productivity, superior customer experience and robust controllership," Rajeev Jain, Managing Director, Bajaj Finance Ltd

"India is primed to be the Creator’s Economy, ready to play a part of skilled talent for the global workforce. Coupled with our demographic dividend, this now is an unparalleled opportunity realised by both corporate India and the small and medium scale sector that forms the breadth and depth of the Indian economy. AI is now clearly a modern-day workplace essential, and the partnership between Microsoft and upGrad will dwell into applications and the practical use of AI in the workplace. We are calling it the ‘U&AI’ initiative - a robust upskilling machinery to connect individuals with AI, bringing innovation and end-users together for building a more equipped, efficient, and operationally sound workforce.," Ronnie Screwvala, Co-founder & Chairperson, upGrad 

"At Apollo Hospitals, our strategic partnership with Microsoft marks a transformative step in redefining healthcare delivery. By collaborating on co-innovation, digital transformation, and cutting-edge research in areas like disease progression, genomics, and multi-modal models, we aim to develop world-class healthcare solutions. With Microsoft’s support in data strategy, engineering, and AI integration, we are building new intellectual property that extends beyond India’s borders. This partnership will accelerate the implementation of an AI roadmap for the ‘Hospital of the Future,’ enhancing patient outcomes, empowering caregivers, and expanding Apollo’s global remote healthcare platform to set new benchmarks in health-tech innovation," Dr. Madhu Sasidhar, President and CEO, Apollo Hospitals  commented. 

"Our partnership with Microsoft is a significant step towards enhancing the digital capabilities of the Indian public sector. By leveraging Microsoft’s expertise in cloud, productivity, AI, and RailTel’s resources and know-how, we aim to drive innovation and efficiency across various public sector and government entities. The AI Center of Excellence will play a pivotal role in this transformation, helping us deliver cutting-edge solutions that meet the evolving needs of our customers," said Sanjai Kumar, Chairman & Managing Director, RailTel.

"India AI Mission is being implemented by the Government of India with the objective of addressing key issues that can help India take the leadership in building applications using AI. This strategy focuses on building partnerships with Industry and Academia. Towards this, the collaboration with Microsoft aligns with the core pillars of the IndiaAI Mission, focusing on skilling, innovation, and responsible AI development. By training 500,000 individuals, fostering innovation through AI Centers of Excellence, and delivering AI-driven solutions in critical sectors, we are advancing India’s AI ecosystem. This partnership emphasizes inclusivity by empowering underserved communities, promoting ethical AI practices, and supporting startups to drive economic growth. Together, we are committed to positioning India as a global AI leader and creating a sustainable and equitable future for all," said Abhishek Singh, CEO, India AI.

Collaborating with India AI for a Smarter Future

Microsoft has also signed a Memorandum of Understanding (MoU) with India AI, a division of the Digital India Corporation, to jointly advance AI and emerging technologies across the country. Key initiatives under the partnership include:

    1.    Skilling Half a Million Individuals by 2026: This includes students, educators, developers, government officials, and women entrepreneurs.
    2.    AI Center of Excellence – AI Catalysts: Promoting rural AI innovation and supporting 100,000 AI developers and innovators through hackathons, community-driven solutions, and an AI marketplace.
    3.    AI Productivity Labs: Establishing 20 labs across 10 states at National Skill Training Institutes (NSTIs) and NIELIT centres to train 20,000 educators in foundational AI courses.
    4.    Sector-Specific AI Solutions: Developing AI-enabled tools for healthcare, education, agriculture, and accessibility by collaborating with startups and social enterprises.

The collaboration will also focus on foundational models supporting Indic languages, research opportunities with Microsoft Research India, and supporting eligible startups through Microsoft’s Founders Hub program.

Speaking at the Microsoft AI Tour in New Delhi, Nadella emphasised India’s pivotal role in shaping AI’s future. “India’s leadership in AI will drive innovation and inclusivity, benefiting every sector,” he said.

Rahul Paith, CEO of MATH commented, "As a hub for innovation, MATH offers a platform where AI/ML startups can scale disruptive technologies and collaborate across industries. With access to cutting-edge resources, mentoring, and strategic partnerships, we empower these startups to create solutions that address complex global challenges. Our goal is to not only advance technological innovation but also to drive economic growth by nurturing the next generation of AI leaders, positioning India as a global hub for AI excellence."