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Microsoft has announced a $3 billion investment to expand its Azure cloud and artificial intelligence (AI) capacities in India over the next two years. This move emphasizes India’s importance as a key growth market for technology, given its expertise and cost-effectiveness. Additionally, the investment will focus on upskilling Indian professionals in AI, building on Microsoft’s plan to invest $80 billion in AI-enabled data centers. Microsoft CEO Satya Nadella highlighted India’s significant contributions to AI projects, particularly through GitHub Copilot, and noted that India is projected to have the largest developer community by 2028. Microsoft plans to train 10 million people in AI by 2030, following the upskilling of 2.4 million individuals last year. The investment reflects the ongoing competition among U.S. tech giants to capture and nurture technological talent in India.

This strategic expansion aligns with Microsoft’s broader vision to support India’s growing digital economy and underscores the nation’s pivotal role in the global technology landscape. By enhancing its infrastructure and focusing on skill development, Microsoft aims to empower individuals and organizations across India, fostering innovation and contributing to the country’s long-term competitiveness in the AI domain.

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India is poised to host over 620 Global Capability Centres (GCCs) of Forbes Global 2000 companies by 2030, marking a nearly 40% increase from the current 450 companies operating 825 such centres, according to a study by consulting firm ANSR.

This expansion is expected to boost the talent base at these GCCs by 45%, reaching 1.9 million professionals. Notably, 45% of existing GCCs have expanded their operations across multiple Indian cities. A significant majority are focusing on advanced technologies: 85% on artificial intelligence and data analytics, 80% on cloud computing, 75% on robotics process automation, 70% on digital commerce and cybersecurity, and 45% on emerging technologies like blockchain, augmented and virtual reality, and the Internet of Things.

This growth underscores India’s evolution from a low-cost outsourcing hub to a critical operational center for global companies, driven by its substantial talent pool and mature offshoring ecosystem. The GCC market in India is projected to reach $105 billion by 2030, up from $64.6 billion in fiscal 2024.

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