Addressing the World Economic Forum, Gates expressed great optimism about India and China and continuously referred to them as regions where tremendous change was taking place.

"While China has become the largest broadband country in the world," Gates said, adding "Indian market was growing and now faces the challenge of taking the latest technology to the rural areas."

He said that technology was also being used for disease reduction and new products. He elaborated on how the cellphone had transformed from an ear instrument to giving access to the internet and many more functions.

Gates said though, India and China may not be paying for software, sales in these two countries was increasing and Microsoft was very much there to stay. Moreover, personal computer sales were growing by 11 percent.