Microsoft and India AI Mission Join Forces to Skill 500,000 by 2026

Microsoft has announced a partnership with the government’s ‘India AI Mission’. The Memorandum of Understanding (MoU) aims to skill 500,000 individuals by 2026, including students, educators, developers, government officials, and women entrepreneurs. This initiative is part of a broader effort to leverage artificial intelligence (AI) to drive innovation, enhance productivity, and foster inclusive growth across the country.

The partnership will establish an AI Center of Excellence, known as ‘AI Catalysts’, to promote rural AI innovation and support 100,000 AI innovators and developers through hackathons, community-building solutions, and an AI marketplace. Additionally, ‘AI Productivity Labs’ will be set up at 20 National Skill Training Institutes (NSTIs)/NIELIT centres in 10 states to impart foundational courses for 20,000 educators.

The collaboration will also focus on developing AI-enabled solutions for citizen-scale domains such as healthcare, education, accessibility, and agriculture. Puneet Chandok, president of Microsoft India and South Asia, expressed excitement about working closely with the government to extend the benefits of the India AI missionto every corner of the country and democratize access to technology and resources.

In addition to the MoU, Microsoft and RailTel have entered a five-year strategic partnership to advance digital, cloud, and AI transformation in the Indian railways and public sector space. This partnership comes on the heels of a recent IDC study, commissioned by Microsoft, which showed AI usage in India jumped from 63 per cent in 2023 to 72 per cent in 2024.

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 centres. The tech giant aims to train and skill 10 million people in AI by 2030. The company has already empowered 2.4 million Indians, including civil servants, college students and people with disabilities, with AI skills.

This partnership is reminiscent of similar initiatives in the past where tech giants have collaborated with governments to drive technological advancement and skill development. For instance, Oracle announced plans to invest more than $6.5 billion to set up its first public cloud region in Malaysia, reflecting the growing demand for AI and cloud services in Southeast Asia. Similarly, IBM signed an MoU with the Government of Gujaratto establish an AI Cluster in GIFT City to drive AI innovation and collaboration.

The Microsoft-India AI Mission partnership is a significant step towards realizing India’s digital transformation goals. It not only aims to equip individuals with the necessary skills to thrive in the digital age but also seeks to democratize access to technology and resources, thereby fostering inclusive growth. The initiative also underscores the critical role of public-private partnerships in driving technological advancement and economic growth.