The move is also aligned with India's vision of becoming a digitally empowered society, promoting innovation and technological self-reliance

Satya Nadella Meets PM Modi, Microsoft Commits USD 17.5B to India’s AI Future

On Tuesday, December 9, 2025, Microsoft made a historic commitment to invest in India. It marks the largest investment ever by the company in Asia. This announcement was made after a high-profile meeting between Microsoft Chairman and CEO Satya Nadella and India’s Prime Minister Narendra Modi at his official residence in New Delhi.

After the meeting, in a post on X (formerly Twitter), Nadella said, 'Thank you, PM @narendramodi ji, for an inspiring conversation on India’s AI opportunity.' To support the country’s ambitions, Microsoft is committing USD 17.5 billion, our largest investment ever in Asia, to help build the infrastructure, skills, and sovereign capabilities needed for India’s AI-first future.

The planned investment, which is about INR 1.5 lakh crore, will mainly focus on strengthening India’s artificial intelligence (AI) infrastructure, digital skills, and sovereign technology capabilities. Microsoft focuses on supporting the development of next-generation AI solutions to help both public and private sectors adopt advanced technologies efficiently.

Prime Minister Modi appreciated this move. He highlighted that India’s AI potential is attracting global attention. He expressed satisfaction at Microsoft choosing India for its largest Asia investment and emphasised the role of the country’s youth in leveraging such opportunities. Modi said India’s youth will harness AI to drive progress, create solutions for global issues, and contribute towards a better planet.

Some of the shifts that can happen with these major investments are likely to be significant employment opportunities, bolster India’s digital ecosystem, and improve the nation’s competitiveness in AI and cloud computing. Microsoft’s investment highlights confidence in India as a strategic hub for technological innovation and digital transformation.

According to industry analysts, this step is a major boost for India’s technology sector. It positions the country as a global leader in AI development. The move is also aligned with India’s vision of becoming a digitally empowered society, promoting innovation and technological self-reliance.

With this initiative, Microsoft strengthens its footprint in India and signals the growing importance of emerging markets in the global technology landscape. The investment is likely to create opportunities for further collaborations, skill development programmes, and large-scale AI infrastructure projects across the country.