UPDATE 1-Yahoo aims to boost margins, grow India ops

* Aims to grow operating margin to 15-20 pct next 3 years

* Wants to expand, hire people in India

* Says "very happy" with investment in China's Alibaba

* Says Microsoft alliance will be global and is on track (Updates with quotes, details)

By Harry Suhartono and Kevin Lim

SINGAPORE, Nov 10 (Reuters) - Yahoo Inc (YHOO.O) wants to triple its operating margin to 15-20 percent over the next three years by increasing revenue and keeping costs under control, CEO Carol Bartz said on Tuesday.

She also said that Yahoo, the top U.S. seller of online display ads, planned to expand its business in India and hire more people there as it targets emerging markets with low Internet penetration and high growth potential.

"Six percent operating margin is terrible, terrible... We have a commitment that it will be 15-20 percent in the next three years," she said at a lunch talk organised by the American Chamber of Commerce in Singapore.

Bartz, who joined Yahoo as CEO in January this year, has been trying to revitalise the Internet giant by shedding staff, dropping unprofitable products and getting the firm to respond faster to changes in the way people use the web.