Microsoft Commits USD 17.5 Billion Investment in India: Satya Nadella

New Delhi: American multinational technology giant Microsoft on Tuesday announced that the company would invest over Rs 1.58 lakh crore ($17.5 billion) in India to help build infrastructure, skills, and sovereign capabilities needed for the country's artificial intelligence or AI future. The statement of the company came soon after Microsoft CEO Satya Nadella met Prime Minister Narendra Modi, discussing India's AI potential. After the meeting, Nadella, however, pledged $17.5 billion for infrastructure and skills development, marking Microsoft's largest investment in Asia.

The new funding is expected to accelerate India’s efforts to position itself as a global centre for AI innovation. It is, however, learnt that Microsoft’s plan focuses on scaling cloud and computing infrastructure, expanding AI skilling initiatives, and supporting secure, sovereign data systems across sectors. The new deal is expected to accelerate India’s efforts to position itself as a global centre for AI innovation.

Following the meeting, Nadella also posted on X, thanking the Prime Minister for an “inspiring conversation" on India’s AI opportunity. “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," Nadella wrote on X.

Microsoft, in a statement also said that the company plans to invest $17.5 billion in India over the next four years, (2026-2029) to drive AI diffusion at a population scale. “It comes on top of Microsoft's earlier commitment of $3 billion announced in January 2025.

The investment aligns with India’s broader push to integrate artificial intelligence across industries such as healthcare, manufacturing, governance, education and financial services,” the statement said.

Prime Minister Modi also acknowledged the historic move, saying that the youth of India will use this opportunity to innovate and leverage the power of AI for a better planet. “When it comes to AI, the world is optimistic about India! Had a very productive discussion with Mr 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," said PM Modi in an X post.

Besides, Microsoft, its peers like

Intel, Cognizant and several others are also eying to invest in India in the near future. For instance, Intel has also signed a strategic partnership with the Tata Group, one of India’s biggest global enterprises, in a bid to boost the country’s indigenous semiconductor and compute ecosystem. India has emerged as a key growth market for US tech giants such as Google and Microsoft that have poured billions into building and scaling their operations in the South Asian market as they work to court businesses serving millions of users. However, the Intel deal focuses on consumer and enterprise hardware enablement via an MoU, which will include manufacturing and packaging of Intel products for local markets as well as advanced packaging in India.

Nadella’s announcement also reflects Microsoft’s wider emphasis on AI adoption, not only in India but also worldwide. Though the Indian government has not yet disclosed the operational framework for the investment, officials have described Microsoft’s commitment as a significant boost to India’s digital transformation trajectory.

The CEO recently highlighted how tools like Microsoft 365 copilot are transforming productivity and reshaping the future of work, citing examples during major global events including the Excel World Championship. Microsoft has been operating in India for more than two decades and has more than 22,000 employees across 10 Indian cities. However, much like its rivals, the Windows maker has also come under pressure to show that the billions it is pouring into AI will start to reap profits.

Reacting to the mega deal of Microsoft, Union minister of electronics & information technology Ashwini Vaishnaw welcomed the move, saying that 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,” Vaishnaw said.

Puneet Chandok, president, Microsoft India and South Asia also said that Microsoft has been part of India’s fabric for more than three decades. "As the nation moves confidently into its AI-first future, we are proud to stand as a trusted partner in advancing the infrastructure, innovation and opportunity that can power a billion dreams. Building on the US$3 billion investment announced in January 2025, our new US$17.5 billion commitment and deep partnership across India’s technology ecosystem are focused on turning India’s AI ambition into impact for every citizen. This transformation is anchored on three pillars: hyperscale infrastructure to run AI at scale, sovereign-ready solutions that ensure trust, and skilling programs that empower every Indian to not just join the future but shape it,” Chandok added