Artificial intelligence (AI) has the potential to significantly boost the value creation of manufacturing Micro, Small, and Medium Enterprises (MSMEs) in India by 2035, with estimates ranging from $135.6 billion to $149.9 billion. A report by PwC India and the Observer Research Foundation (ORF) suggests that if MSMEs contribute 50% to India’s gross manufacturing value added, substantial growth opportunities amounting to $3.13–$3.21 trillion could be unlocked by 2047.
According to Sanjeev Krishan, Chairperson of PwC in India, AI can empower MSMEs to enhance productivity, quality, speed, and innovation without replacing human workers. This approach could help these enterprises break free from low productivity levels and enhance their competitiveness in the market while also bolstering job creation and supply chain resilience.
The report emphasizes AI’s transformative potential across various aspects of the manufacturing value chain for MSMEs. From predictive maintenance and energy optimization to credit assessment and generative design, AI applications can revolutionize operations and decision-making processes for small firms. By making AI more accessible and cost-effective, MSMEs can improve their output consistency, meet global standards, and expand their production capacities rapidly.
Investments in data centers and semiconductor ecosystems are expected to rise significantly, offering MSMEs opportunities to supply non-tech-intensive capital goods like cooling equipment and industrial components. This could open up a substantial manufacturing market worth $100–$150 billion over time, enabling small firms to participate in the evolving tech landscape.
