Growing Interest by Global IT Leaders
Artificial intelligence is already shaping the global market and, subsequently, the IT service landscape. Meanwhile, under President Trump, the United States has imposed higher tariffs and stricter visa rules. Huge international IT companies have started preparing to expand their operations in India. Such companies are planning to invest chiefly in AI and cloud technologies. The visiting senior executives of those firms are meeting government leaders to chalk out strategies. Experts say these companies prefer India because the country has a large talent pool with lower operating costs than in the US. While domestic IT activity has been slow recently, these new investment announcements may help revive the sector.
Microsoft's Long-Term Investment
It is supposed to invest $17.5 billion (₹1.58 lakh crore) in India over five years, considered one of Microsoft's largest recent investments. Microsoft plans to use funds for cloud and AI capabilities, development of workforce skills, and strengthening its current operations.
Amazon Expands AI and Digital Infrastructure
Amazon will invest $35 billion by the year 2030 in India. The firm intends to support AI-based digitization, enhance exports, and create jobs in the country. The firm had earlier announced $12.7 billion for AI and the expansion of web services in Telangana and Maharashtra. The new plan raises its total investment to $35 billion. Currently, Amazon employs around 120,000 people in India.
Google Builds a Major AI Hub in Visakhapatnam
Google will set up a large AI hub and a gigawatt-scale data center in Visakhapatnam. It announced a $15 billion (₹1.35 lakh crore) investment over five years. The project consists of computer infrastructure, fiber networks, and a subsea cable landing station. This facility will be the largest AI and data centre by Google outside the US.
Meta and Reliance Ink Deal for AI Expansion
As part of this, Meta-the parent company of Facebook, Instagram, and WhatsApp-will invest over $100 million, or about ₹900 crore, in India in partnership with Reliance Industries. This is to develop high-end AI services for businesses worldwide. Similarly, Meta is going to construct a data center of 500 megawatts in Visakhapatnam in association with Sify Technologies.
Other Industry Moves
The confirmation about the involvement in India's semiconductor development came from the CEO of Intel. Even the CEO of Cognizant visited India to launch new services in Visakhapatnam.
Are US Tariffs Creating a Shift? The US government has slapped taxes on the products of several countries and made the visa rules more stringent for foreign professionals. Analysts had long expected these policies to nudge American IT firms to increasingly rely on India for skilled talent. That seems to be happening now. More companies are setting up large bases in India. They also opened GCCs, or offshore units for multinational IT firms. According to experts, GCCs not only help in cost cutting but also aid in research and capability building. They form an integral part of growing AI-based IT services.
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