India’s small companies need to see AI as more than an artificial promise

From managing supply chains to reaching new customers, India’s micro, small and medium enterprises (MSMEs) are approaching a new technological shift. For millions of such businesses, the next big leap may lie not in hiring more workers or buying bigger machines, but in learning how to put artificial intelligence (AI) to work.

MSMEs contribute 31.1% to India’s GDP, account for around 35.4% of its manufacturing and 48.58% of its exports, according to the Economic Survey 2025-26, tabled in Parliament on January 29, 2026. The sector comprises 7.47 crore enterprises employing over 32.82 crore people, making it the country’s second-largest employer after agriculture.