New Delhi, March 7 (NationPress) The emergence of artificial intelligence (AI) is set to play a pivotal role in enhancing the value creation journey for manufacturing MSMEs, with projections suggesting an impact of $135.6–$149.9 billion by 2035. This forecast is based on a scenario where MSMEs contribute to 50% of India's gross manufacturing value added, as detailed in a recent report.

According to a collaborative study by PwC India and the Observer Research Foundation (ORF), if India aims to elevate manufacturing's GDP share to 25%, and if MSMEs can increase their contribution from 35.4% in FY 2023–24 to 50% by 2047, they could unlock growth opportunities worth $3.13–$3.21 trillion by 2047.

“AI is no longer limited to large corporations. As a supportive tool rather than a substitute, it can empower MSMEs to escape low productivity levels and enhance their competitiveness regarding quality, speed, and innovation, while also bolstering job security and supply chain durability,” stated Sanjeev Krishan, Chairperson of PwC in India.

“We are dedicated to promoting an approach centered on human values and ecosystem collaboration, ensuring AI is accessible, cost-effective, and actionable for businesses of all sizes. By serving as a catalyst for employees and productivity, AI can assist MSMEs in overcoming structural challenges and integrating more effectively into global value chains,” he added.

The report emphasizes AI's capacity to revolutionize MSMEs throughout the manufacturing value chain—encompassing predictive maintenance, energy efficiency, vision-based quality inspection on production floors, AI-driven credit evaluations, multilingual customer interactions, compliance automation, and generative design.

By lowering barriers to capability and minimizing scaling costs, AI can enable smaller firms to enhance consistency, comply with global standards, and accelerate their production rates.

With substantial investments anticipated in data centers and semiconductor ecosystems, MSMEs can also engage by supplying non-tech-intensive capital goods such as harnesses, cooling systems, and industrial components, thus creating a manufacturing opportunity ranging from $100 to $150 billion over time.

“India's AI evolution will be determined not just by groundbreaking advancements but by the depth and fairness of AI's spread across the industrial economy. MSMEs are at the core of this evolution. Our collaboration with PwC India presents a pragmatic, bottom-up strategy aligning policy, industry, and civil society to ensure AI adoption enhances competitiveness, preserves jobs, and fosters inclusive growth,” remarked Samir Saran, President of ORF.