India is witnessing a major revolution in its technology industry, especially as the AI fever grips the global tech scene. Powerhouses like Google, Microsoft, Intel, and Cognizant are now committing billions of dollars to improve India’s capabilities in Artificial Intelligence (AI) and semiconductor manufacturing. The strategic inflow of investments, highlighted by recent high-profile meetings between top executives from these tech brands and Prime Minister Narendra Modi, highlights how India is emerging as a key player in the global technology ecosystem, especially in the era of AI.
Microsoft leads the AI charge, with Google on its tail
The biggest announcement came from Microsoft CEO Satya Nadella, who announced a $17.5 billion investment to accelerate India’s AI-first future. Described as Microsoft’s largest investment in Asia, the capital will be used to build essential AI infrastructure and enhance workforce skills across the country between 2026 and 2029.
This commitment follows a recent announcement by Google, which is setting up an advanced $15 billion AI data hub in Visakhapatnam, helping to position India in a new wave of cloud and computational services. These investments hint at a clear intention to capitalise on India’s vast digital market and talent.
Intel and Tata strengthen semiconductor ties
While Microsoft focuses on AI infrastructure, Intel is focusing on India’s position as a global semiconductor powerhouse. Intel CEO Lip-Bu Tan met with PM Modi to reaffirm the company’s commitment to the India Semiconductor Mission.
Intel has signed a new agreement to collaborate with the Tata Group, focusing on advanced semiconductor manufacturing, assembly, and packaging. This partnership is a move toward localising the supply chain and establishing a robust ecosystem for chip design and fabrication within the country, aligning with the government’s ‘Make in India’ initiative.
Cognizant focuses on skill development
Cognizant CEO Ravi Kumar S and his leadership team also met with the Prime Minister, highlighting the crucial role of Indian talent in the AI transformation. Cognizant reaffirmed its dedication to advancing AI adoption and skill enhancement for the Indian workforce. The company plans to expand its operations into emerging cities to ensure equitable growth and nurture local talent, ensuring India’s youth is equipped for the rapidly evolving tech landscape.
Why tech brands are investing in India now?
Industry observers point to several factors driving this newfound interest in Indian tech investment:
Vast talent pool: India hosts nearly 20% of global chip design engineers and possesses an enormous pool of young, English-speaking, and technologically proficient graduates.
Government policy: Initiatives like the ‘Semicon India Programme’ and a generally pro-innovation regulatory environment, with fewer stringent AI laws compared to other regions, are attractive to global firms.
Market momentum: India’s rapidly growing consumer electronics, electric vehicle (EV), and digital services sectors are fueling a surge in demand for AI, cloud, and semiconductor technologies.
