Microsoft Powers the “AI Economy”: Skills 5.6 Million Indians, Accelerating to 10 Million Goal
By Santosh Sinha | EdTech & Skilling Desk Date: November 29, 2025
Bengaluru: The race to build India’s “AI Army” has just crossed a critical finish line. Microsoft India announced this week that it has successfully skilled a massive workforce of 5.6 million Indians in Artificial Intelligence, hitting its aggressive phase-one target well ahead of schedule.
This milestone puts the tech giant firmly on track to achieve its moonshot goal of skilling 10 million Indians by 2030, a commitment made by CEO Satya Nadella earlier this year.
But the numbers tell only half the story. The real breakthrough lies in who is being skilled. Moving beyond elite engineering colleges, Microsoft has successfully embedded high-level AI curriculum directly into India’s vocational heartland-Industrial Training Institutes (ITIs) and National Skill Training Institutes (NSTIs)-democratizing access to the “AI Economy.”
The “Micro-Degree” Revolution
The centerpiece of this success is the “AI Programming Assistant” Micro-Degree, launched in partnership with the Directorate General of Training (DGT) and the Ministry of Skill Development and Entrepreneurship (MSDE).
Unlike theoretical courses, this program is designed for the factory floor and the coding backend.
- The Reach: The curriculum is now live across 33 NSTIs and thousands of ITIs, bringing AI education to Tier-2 and Tier-3 cities.
- The Content: Students are not just learning “what is AI”; they are being trained in Python, Computer Vision, Natural Language Processing (NLP), and Generative AI tools.
“India stands at a defining moment in its AI journey. We are not just training engineers; we are training a workforce. By embedding AI learning into vocational institutions, we are ensuring that the benefits of the AI economy reach every pin code,” stated Puneet Chandok, President, Microsoft India & South Asia.
Blue-Collar to “New-Collar”
This initiative marks a structural shift in India’s job market. It addresses the critical shortage of “New-Collar” workers-professionals who may not have four-year degrees but possess the specific technical skills required to manage AI agents and automated workflows.
With 58% of Global Capability Centers (GCCs) in India pivoting to “Agentic AI” (as reported by EY earlier this week), the demand for this specific skill set is exploding. Microsoft’s program ensures that a student in an ITI in rural Bihar can graduate with the skills to manage a GenAI workflow for a multinational bank.
Inclusivity by Design
A standout feature of the program is its mandate for inclusivity.
- Women in Tech: The initiative requires that at least 50% of the intake for the AI micro-degree be women.
- Success Stories: At NSTI Bengaluru, nearly 90% of the initial cohort-comprising largely of women from non-tech backgrounds-have already secured placements or internships, proving that the “Gender Gap” in AI is solvable with targeted policy.
The “ADVANTA(I)GE” Roadmap
This milestone falls under Microsoft’s broader ADVANTA(I)GE INDIA initiative. Having trained 5.6 million people in just 10 months, the program is now scaling up its “Train the Trainer” model.
The next phase focuses on:
- AI Creativity Labs: Setting up dedicated labs in rural districts to foster local innovation.
- Public Sector Skilling: Extending the curriculum to 250,000 government officers to “AI-enable” public service delivery.
The Outlook
For the Indian economy, Microsoft’s announcement is a validation of the “Demographic Dividend.” By proving that vocational students can master Generative AI, Microsoft has shattered the myth that AI is an elite pursuit. As we head into 2026, the question is no longer “Will AI take jobs?” but “Do you have the micro-degree to keep one?”