Obama has the distinction of appointing the largest number of Indian-Americans in any presidential administrations yet.
Wearing a glamorous skirt for the occasion especially designed by Indian-born fashion designer Naeem Khan, Michelle gave a few poses from the dance number.
"Of course, as you all know, I think I can dance," she said in an apparent reference to her dance in Mumbai three years ago when she celebrated Diwali.
"But not as good as they can dance," she said, referring to the expert dance by members of the Gold Spot Band, the New York-based popular Indian-American band.