Microsoft, Google and Amazon pledge billions in India investment: Why is big tech betting big on India?
Microsoft and Amazon have pledged a combined total of over $50 billion in investments, primarily focused on artificial intelligence (AI) and cloud technology in India.
On Tuesday, Microsoft CEO Satya Nadella announced plans to invest $17.5 billion (around Rs 1.58 lakh crore) in India to help build infrastructure and sovereign capabilities for the country's AI-first future. This marks the third major AI-driven investment in India in the past two months.
Following this, Amazon announced on Wednesday that it plans to invest a staggering $35 billion in India over the next five years. This investment will expand its businesses from quick commerce to cloud computing and artificial intelligence, showcasing how the global supermajor is doubling down on its presence in the world's fastest-growing major economy.
Previously, Google had also committed $15 billion over the next five years to building AI data centers in the region.
Amazon confirmed that its investments through 2030, particularly in areas like artificial intelligence and logistics infrastructure, are expected to help create an additional 1 million jobs in India.
Microsoft stated that its $17.5 billion commitment builds on the $3 billion (around Rs 26,955 crore) funding announced earlier this year, which the company is on track to spend by the end of calendar year (CY) 2026.
Major tech companies like Microsoft and Amazon are making significant investments in India, with a combined total of over $50 billion. They're focusing on artificial intelligence (AI) and cloud technology, which gives them a great advantage in a rapidly evolving market.
Here are some reasons why these companies are betting big on India:
- Fast Growth: The market for AI in India is expected to grow quickly, reaching over $17 billion by 2027.
- Government Support: The Indian government is actively promoting the development of AI through initiatives such as IndiaAI Mission that provide substantial funding and subsidised infrastructure for homegrown AI development.
- Rising Startups: There are more than 2,000 startups in India dedicated to developing AI solutions tailored to the country’s unique challenges, such as language diversity, legal needs, and healthcare.
- Skilled Workforce: India has the second-largest pool of AI talent in the world, right after the United States, providing a large number of skilled professionals for tech development.
- Digital Infrastructure: With the widespread use of digital platforms like UPI and Aadhaar, integrating AI into everyday services has become much easier.
- Growing Demand: There's a strong need for AI solutions in various sectors like banking, healthcare, and agriculture, as these technologies can help improve efficiency and accessibility.
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