AI to Revolutionize MSME Manufacturing, Unlock Trillions in Growth

Artificial Intelligence could significantly boost India's Micro, Small, and Medium Enterprises (MSMEs) in manufacturing, potentially contributing USD 135.6 to 149.9 billion by 2035. A PwC report highlights how AI adoption can transform MSMEs into competitive players globally, with opportunities reaching USD 3.13-3.21 trillion by 2047.

A groundbreaking report by PwC reveals that Artificial Intelligence (AI) could dramatically enhance India's Micro, Small, and Medium Enterprises (MSMEs) within the manufacturing sector, potentially injecting as much as USD 149.9 billion by 2035. The study, titled 'Unlocking the AI Edge for MSMEs,' underscores the necessity for these enterprises to contribute half of the nation's manufacturing value added to achieve this growth.

As detailed in the report, MSMEs could explore growth avenues worth USD 3.13-3.21 trillion by 2047, provided India's manufacturing share of GDP climbs to 25%, and the MSMEs' gross value added (GVA) contribution elevates from 35.4% in FY 2023-24 to 50%. This transformation requires MSMEs to integrate AI into their operations, partnering across global supply chains to enhance their market reach.

Non-technical products such as harnesses and cooling equipment, valued between USD 100-150 billion, present lucrative opportunities for MSMEs. AI's broader economic impact, projected at USD 1.7 trillion by 2035, demands a substantial USD 500 billion investment in AI infrastructure. By overcoming barriers in design, quality, and decision-making, AI enables MSMEs to escape low-productivity constraints, fundamentally changing their competitive dynamics in the marketplace.

(With inputs from agencies.)