India to bolster AI adoption, upskilling under Microsoft deal

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IndiaAI, a federal government initiative launched in March 2024, has entered into partnership with technology giant Microsoft (NASDAQ: MSFT) to drive adoption and development of artificial intelligence (AI) in India. Microsoft has also announced plans to invest $3 billion in cloud and AI infrastructure in India over the next two years, including the establishment of new data centers.

In partnership with IndiaAI, Microsoft aims to skill 500,000 individuals by 2026, including students, educators, developers, government officials, and women entrepreneurs, the Ministry of Electronics & IT (Meity) said.

The initiative will establish “AI Catalysts,” a Center of Excellence focused on promoting rural AI innovation in Tier 2 and Tier 3 cities, and will support 100,000 AI innovators and developers through hackathons, community building, and an AI marketplace.

“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,” Abhishek Singh, CEO, IndiaAI Mission, said.

“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,” Singh added.

In March 2024, India approved roughly $1.24 billion for the IndiaAI Mission. The financial infusion aims to boost the country’s AI ecosystem, innovation, and entrepreneurship. The allotment of funds for AI’s development is significant as India intends to leverage AI to achieve its Viksit Bharat (developed India) goal by 2047. With 1.4 billion people—almost 18% of the global population—the economy of the world’s most populous nation is set to dominate the global economic landscape, maintaining its status as the fastest-growing large economy over the next two fiscal years. The World Bank has projected 6.7% growth for India, surpassing global growth of 2.7%.

India also projects to be a $5 trillion economy by 2027-2028 and the world’s third-biggest economy, leveraging emerging technologies like AI and blockchain as key catalysts for growth.

The road ahead with Microsoft

As part of the IndiaAI Mission, Microsoft’s Founders Hub program will provide up to 1,000 AI startups with benefits such as Azure credits, business resources, and mentorship, fostering innovation within India’s startup ecosystem. The initiative will also focus on developing foundational AI models with support for Indic languages to address the country’s linguistic diversity and specific needs.

Furthermore, Microsoft will support IndiaAI in building a robust and scalable dataset platform, offering tools for dataset curation, annotation, and synthetic data generation. Collaborating to create frameworks, standards, and evaluation metrics for responsible AI development, the partnership will also contribute to the establishment of an AI Safety Institute in India.

This collaboration highlights IndiaAI and Microsoft’s shared vision to harness AI for inclusive development and economic transformation. By focusing on skilling, innovation, datasets, and responsible AI, it aims to tackle large-scale challenges, foster entrepreneurship, and strengthen India’s AI ecosystem, positioning the country as a global AI leader while driving sustainable growth.

“We are proud to come together with IndiaAI to advance AI and emerging technologies in India. This collaboration underscores Microsoft’s commitment to copiloting India on its journey to become an AI-first nation,” said Puneet Chandok, President, Microsoft India and South Asia.

“By skilling 500,000 individuals, establishing AI Centers of Excellence, and setting up AI Productivity Labs, we aim to democratize access to AI, empower communities, and foster innovation, particularly in rural and underserved areas. Together with India AI, we are dedicated to accelerating AI adoption and creating a sustainable future for all,” Chandok added.

Microsoft also announced partnerships with top organizations including RailTel, Apollo Hospitals, Bajaj Finserv, Mahindra Group (NASDAQ: MAHMF), and upGrad. RailTel’s five-year agreement focuses on using AI to transform Indian railways and the public sector. Apollo Hospitals will collaborate for healthcare solutions, while Bajaj Finance aims to become a “FinAI company” serving 200 million customers. Mahindra Group will create an AI division to drive innovation across its automotive, farming, and financial services sectors.

Tech giants vying for a slice of India

Microsoft’s AI investments in India come amid intense competition from other tech giants like Google (NASDAQ: GOOGL), Amazon (NASDAQ: AMZN), and Nvidia (NASDAQ: NVDA), all striving to capture a larger share of the rapidly growing Indian market.

Global chipmaker Nvidia Corp. has formed key partnerships with major Indian companies, including Reliance Industries (NASDAQ: RELI), Tata Communications, and Yotta Data Services. These collaborations reflect Nvidia’s strategy to position itself as a leader in AI chips and infrastructure within India.

Meanwhile, Google is leveraging its AI tools to empower Indian merchants by offering innovative solutions to enhance their digital presence. With a strong focus on addressing local needs, Google’s efforts are aimed at enabling businesses to thrive in an increasingly digital economy, further cementing its influence in the region.

Amazon has announced its plans to acquire fintech firm Axio, allowing the e-commerce giant to enhance its credit offerings for customers in India.

These developments solidify India’s position as a major revenue source for the world’s leading technology companies, enhancing the country’s significance in the global tech landscape.

India has long been a strategically important market due to its expanding economic influence and growing geopolitical stature. However, with the recent surge in government incentives and private-sector investments, the country is poised to become one of the largest and most influential markets for American tech giants. This shift highlights India’s growing prominence as a hub for technological innovation and business growth, offering unparalleled opportunities for global players to expand their reach and capitalize on the country’s thriving digital economy.

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