Artificial intelligence is expected to increase profitability for Indian micro, small, and medium enterprises (MSMEs) by up to 35%, with nearly 60% of these businesses projected to achieve double-digit revenue growth, according to a recent report by The Economic Times. The findings highlight AI's growing role in transforming the MSME sector across India.
The report outlines how AI adoption is accelerating among Indian MSMEs, driven by advancements in automation, data analytics, and customer engagement tools. These technologies enable businesses to optimize operations, reduce costs, and enhance decision-making. The Economic Times notes that the integration of AI solutions is becoming a key factor in MSMEs' ability to scale and compete in increasingly digital markets.
This development comes amid a broader surge in intangible investments globally, propelled by AI innovations, as noted by the United Nations and covered by The Economic Times. The MSME sector, a critical component of India's economy, stands to benefit significantly from AI-driven efficiencies. The report's projections place Indian MSMEs alongside global peers leveraging AI for improved financial performance and market expansion.
The Economic Times report provides detailed benchmarks showing the potential impact of AI on MSME profitability and revenue growth, underscoring the sector's readiness to embrace digital transformation. The findings serve as a data point for policymakers and industry stakeholders focusing on technology adoption in India's small business landscape.