New Delhi: A major Memorandum of Understanding (MoU) between Microsoft and the Ministry of Labour and Employment, signed in New Delhi, represents an important step towards the creation of more jobs, an increased AI-driven skilling, and the positioning of India in the global labour market. The deal was signed before Union Minister of Labour and Employment and Youth Affairs and Sports, Dr Mansukh Mandaviya, and Microsoft CEO Satya Nadella. The leaders indicated that the relationship is meant to capitalise on the demographic capability of India and create a digitally enabled and future-ready workforce.
In this partnership, Microsoft will contribute to enhancing the position of the National Career Service (NCS) platform by attracting over 15,000 employers and international partners to the portal. The company will also extend AI-led skilling with the help of DigiSaksham, allowing millions of young Indians to acquire skills in artificial intelligence, cloud computing, cybersecurity and modern productivity tools.
Had an engaging discussion with Mr. Satya Nadella, CEO, Microsoft. We welcome Microsoft’s commitment to partnering with India to strengthen digital architecture.
Glad to share that the Ministry of Labour & Employment has signed an MoU with Microsoft. This partnership will… pic.twitter.com/hjYflqAmiL
— Dr Mansukh Mandaviya (@mansukhmandviya) December 10, 2025
Microsoft to boost employer participation
The most notable aspect of the MoU is that Microsoft will prompt its international community of employers to use the NCS platform to hire. This action is likely to expand access to formal employment, spur high-growth sectors, and improve mobility of Indian youth and professionals to other countries. The government feels that this influx of employers will bring a major presence of India in the global labour markets.
AI skilling and workforce readiness to get a big push
The collaboration will further increase AI-driven skilling within the framework of DigiSaksham, which will assist youth to gain skills in accordance with new global standards. The Ministry opined that such efforts will help in producing a workforce that is well prepared in terms of domestic as well as international prospects.
Social protection milestone praised by Satya Nadella
Dr Mandaviya noted the social protection coverage in India that is increasing at a high rate since it has increased from 19 per cent in 2015 to 64.3 per cent in 2025, and now it covers more than 94 crore Indians. He indicated that the incorporation of AI into platforms such as e-Shram and NCS will make the country proceed to cover 100 crore people with social security by March 2026.
Satya Nadella lauded the growing social protection ecosystem in India, citing the fact that India was doing well to include the unorganised workers in the safety net using the e-Shram portal. He further outlined how Microsoft is interested in assisting India in its attempts to establish an Employment Digital Public Infrastructure (Employment DPI), which would be able to innovate and develop scalable labour-market solutions.
The Azure and AI solutions provided by Microsoft will assist the Ministry in its upgrading of the work of NCS, bettering e-Shram analytics, and refining job-matching systems. The partnership will also contribute to the enhanced participation in the industry and increase the use of the NCS platform by employers, training organisations and partner organisations.