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The strategic integration of artificial intelligence is projected to unlock an average 30-35 per cent improvement in overall business profitability for Indian micro, small, and medium enterprises (MSMEs), according to a joint report by Google and India SME Forum
Furthermore, the report highlighted that digital adoption helps nearly 60 per cent of Indian MSMEs achieve double-digit revenue growth. Vidhya Srinivasan, VP / GM, Ads & Commerce, Google, said, "India's digital maturity has unlocked new opportunities for small businesses. Our AI-powered tools have helped millions of small businesses reach new customers on Google and convert real-time consumer interest into growth." "Looking ahead, agentic AI will actively work on a business' behalf to connect them with ready buyers, predict hyper-local demand shifts, and win new customers at the exact moment of intent," Srinivasan added. The report noted a major transformation in the commerce ecosystem. It stated that 66 per cent of surveyed MSMEs reported expanded market access, while 58 per cent recorded improved customer acquisition. Additionally, 78 per cent of these enterprises experienced a notable drop in customer acquisition costs. On the macroeconomic front, digital advertising by MSMEs is associated with approximately Rs 49,700 crore in economy-wide output and Rs 32,300 crore in Gross Value Added (GVA). In a message read out at the launch, Sushri Shobha Karandlaje, Minister of State for MSME and Labour & Employment, said, "The true depth of our economic progress is found in the aspirations of millions of small-scale enterprises, artisans, and entrepreneurs spanning every corner of India. Technology is reshaping grassroots commerce, allowing a business in any district to command visibility and engage consumers directly." "This democratization ensures that market exposure is accessible to all, irrespective of geographic location or capital size," the Minister added in her message. "Under the leadership of Hon'ble Prime Minister Shri Narendra Modi, the Ministry of MSME remains committed to improving access to finance and markets, promoting formalisation, strengthening skilling, and encouraging technology adoption through the Udyam ecosystem and a range of schemes and initiatives," she added. Bharat Khera, Secretary, Ministry of Micro, Small and Medium Enterprises, said that AI acts as a business enabler that will shape the future of enterprise. He noted that the next phase of growth requires quality, innovation, and stronger collaboration among government, industry, financial institutions, and technology partners to build globally competitive enterprises. Vinod Kumar, President, India SME Forum, stated, "For many small businesses, constraints related to information asymmetries, managerial bandwidth and access to specialised capabilities can limit their ability to scale and compete effectively. The findings of this report suggest that digital adoption and the growing accessibility of artificial intelligence can help narrow some of these structural disadvantages." (ANI)
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