The US-headquartered technology firm’s chief executive further said that the tech giant will also train 10 million people in AI skills in India by 2030, as part of the second edition of the tech company’s ADVANTA(I)GE India programme.

Microsoft CEO Satya Nadella on Tuesday said the company plans to invest $3 billion in India on AI and cloud infrastructure over the next two years.

"Glad to know about Microsoft's ambitious expansion and investment plans in India. It was also wonderful discussing various aspects of tech, innovation and AI in our meeting," Narendra Modi said.

Earlier, Nadella had highlighted the pivotal role of India’s developer community in building cutting-edge products and solutions that solve challenges for the nation and can be deployed around the world.

Microsoft will spend $3 billion to expand its Azure cloud and artificial intelligence (AI) capacity in India, CEO Satya Nadella said on Tuesday, doubling down on a country with tech expertise and low costs to help turn such investments profitable.

Microsoft Corp. plans to spend $3 billion to expand its cloud computing and artificial intelligence capabilities in India, targeting the world’s most populous country to fuel its revenue growth.

Microsoft has kicked off the year in India with plans to grow its revenue. The firm plans to invest $3 billion to expand its cloud Azure and AI services in the country with the world’s largest population.