Gujarat's micro, small and medium enterprises (MSMEs) must move beyond passive awareness of artificial intelligence and automation and begin active implementation to stay competitive and integrate into larger domestic and global supply chains, industry leaders said at the third edition of the CII Gujarat MSME Conclave 2026, held in Ahmedabad on 30 October 2026. The event was organised by the Confederation of Indian Industry (CII) Gujarat under the theme 'Future Ready MSMEs: AI, Supply Chains & Business Opportunities'.

What the Conclave Covered

The conclave brought together government representatives, industry leaders, technology experts and entrepreneurs to deliberate on AI adoption, digital transformation, quality standards, and pathways for MSMEs to deepen their participation in corporate supply chains. The event marked the third consecutive year CII Gujarat has convened MSME stakeholders around a forward-looking industrial theme.

Key Voices: From Awareness to Implementation

Varang Trivedi, Convenor of the CII Gujarat MSME Panel, said the AI revolution had reached an inflection point and was no longer confined to large corporations with sizeable IT budgets. He noted that Gujarat, being among the early adopters of enterprise resource planning (ERP) systems and computerisation, was well placed to lead AI adoption among smaller enterprises. 'The CII Gujarat MSME Panel had decided to make the discussion around AI more relevant to smaller enterprises this year,' Trivedi said.

Shyam Kadakia, Co-Convenor of the CII Gujarat MSME Panel, said MSMEs were essential to Gujarat's industrial ecosystem and had the potential to evolve from standalone manufacturing units into critical partners within larger value chains. He pointed out that large corporate buyers now expect suppliers to maintain consistent quality, ensure timely deliveries and meet compliance requirements — a bar that demands operational transformation. 'The focus must now shift from awareness to adoption and from discussion to implementation,' Kadakia said.

The Case for R&D and Innovation

Industrialist Parakramsinh Jadeja urged MSMEs to invest in research and development (R&D) and innovation, recommending that businesses begin by allocating approximately 5 per cent of their top line to these areas. 'Without innovation there is no sustainability,' he said. Jadeja also advised entrepreneurs against waiting for external support to grow, arguing that MSME status should be treated as a registration milestone to graduate from — not an end destination. 'Every moment presented both risks and opportunities, and entrepreneurs needed to remain focused on the present while adapting to changing circumstances,' he added.

Why This Matters for Gujarat's Industrial Ambitions

Gujarat accounts for a significant share of India's MSME base and has historically led in industrial infrastructure and export readiness. Yet, as global supply chains become increasingly technology-intensive, the gap between AI-aware and AI-adopted enterprises is widening. This conclave signals a growing consensus within industry that incremental digital upgrades are no longer sufficient — structured AI integration is now a competitive baseline. Notably, the call for a 5 per cent R&D allocation is a concrete ask that goes beyond rhetoric, though the mechanisms to support such spending — credit access, technology partners, government incentives — were not detailed at the event. The next steps for CII Gujarat, including any formal frameworks or policy recommendations emerging from the conclave, are awaited.