AI integration to contribute up to $150 billion to manufacturing sector MSMEs by 2035: Report

Artificial Intelligence (AI) could contribute between $135.6 billion and $149.9 billion to the growth of Micro, Small, and Medium Enterprises (MSMEs) in the manufacturing sector as early as 2035. This projection, according to a PwC report titled “Unlocking the AI Edge for MSMEs,” remains contingent on these enterprises accounting for 50% of the nation’s manufacturing value added.

The report indicates that MSMEs stand to unlock growth opportunities in the range of $3.13-$3.21 trillion by 2047. The way forward for this is if India increases the manufacturing share of GDP to 25% and MSMEs raise their contribution to manufacturing gross value added (GVA) from 35.4% in FY 2023-24 to 50 per cent.