Yahoo's move comes as an attempt to tap into the emerging markets with low Internet penetration and high growth potential.
"We go where the population is, we go where the economies are growing," Bartz said.
Apart from India, Yahoo is planning on expanding in Indonesia and Vietnam.
The Internet giant also aims at tripling its operating margin to 15 to 20 percent over the next three years by increasing revenue and strictly keeping its costs under control.
"Six percent operating margin is terrible, terrible... We have a commitment that it will be 15-20 per cent in the next three years," Bartz said at a lunch talk organised by the American Chamber of Commerce in Singapore.
Bartz is headed to India from Singapore, where she will be meeting the Prime Minister Manmohan Singh and other officials.