AI for a competitive future

With the aim of heralding qualitative metamorphosis in the Indian MSMEs sector and sharpening its competitive edge, this paper delves into the transformative role of Artificial Intelligence (AI) in turbo charging the growth and competitiveness of India's MSME sector.

- DR MANIK CHAKRABORTY, ST. XAVIER'S UNIVERSITY, KOLKATA AND DR DEBASISH SUR, THE UNIVERSITY OF BURDWAN, BURDWAN

It sheds light on pivotal AI applications, identifies major stumbling blocks to adoption, scrutinises governmental interventions, and forecasts emerging trajectories — all while underscoring AI's immense promise as a linchpin for fostering inclusive economic prosperity in pursuit of the ‘Viksit Bharat 2047’ dream.

Artificial Intelligence (AI) is emerging as a game-changer for India's Micro, Small, and Medium Enterprises (MSMEs), inducing innovation, empowering automation, and improving operational efficiency. MSMEs are the major driver of India's economic fabric, creating nearly 30 per cent of the GDP, nearly 40 per cent of exports, and over 110 million jobs. Against this backdrop, AI-based solutions are providing new opportunities for growth, improving productivity, and facilitating data-driven decision-making. From automating and optimising operations through predictive analytics to enhancing financial inclusion and supply chain optimisation, AI is increasingly a force for competitiveness and resilience among Indian MSMEs. As India charts its path to ‘Viksit Bharat 2047’—its vision of a developed country—deployment of AI in the MSME sector will be pivotal in driving economic transformation. These smarter technologies are empowering small and medium-sized businesses to grow more efficiently, minimize costs, innovate quicker, and compete fiercely in the domestic as well as the global markets.

AI technologies relevant to MSMES

Artificial Intelligence offers a range of technologies that can help India's MSMEs become more efficient, reduce costs, and increase competitiveness. Key technologies include: