Micro, small, and medium enterprises, or MSMEs, are the backbone of the country’s economy. During 2021-22, the share of MSME's Gross Value Added (GVA) in India’s Gross Domestic Product (GDP) was 29.2%. The sector has also been a major source of employment in India, with MSMEs registered between July 2020 and February 2024 employing more than 170 million people, as per the government’s MSME registration portal, Udyam.
However, despite their importance to the Indian economy, MSMEs often struggle against larger competitors due to limitations in terms of access to human resources, capital, and advanced technologies.
Now, as the tentacles of artificial intelligence (AI) continue their endless crawl into every aspect of modern existence, MSMEs finally have a lever they can pull to bridge the gulf that exists between them and large businesses. Indeed, AI could represent a groundbreaking shift in business dynamics, offering unprecedented opportunities for competition, innovation, and growth.
AI can provide MSMEs with a competitive edge by transforming their business landscape, simplifying current operations, and enabling them to enhance productivity, outreach, and scalability. It can assist them by automating tasks, optimising operations, and providing real-time data-driven insights. Additionally, AI can enable personalised customer experiences, targeted marketing strategies, predictive analytics for cash flow management, and efficient working capital management, further enhancing MSMEs’ ability to compete effectively and thrive in dynamic market environments.
AI can have several pro-competitive effects for MSMEs, with typical use cases ranging from demand-side management to condition monitoring, predictive maintenance, quality management, production planning, production control, and supply chain management.
This is a premium article and available only to subscribers.
What you get

Premium Articles
4 articles every week

Archives
>3 years of archives

Newsletter
4 every week

Gifting Credits
5 premium articles every month

Sessions
3 screens Concurrently

Org. Charts
Most Popular

Have a coupon code?
Access unlimited content at a special discounted rate. Trusted by top VC’s and leading organizations, we provide bulk subscriptions for groups of 30+. Contact us for more details
Top educational institutions have collaborated with us for campus-wide subscriptions. For bulk campus-wide access, please get in touch.
Got a tip? If you have a lead we should be chasing at The CapTable, write to us at [email protected]
Join our community of 100,000+ top executives, VCs, entrepreneurs, and brightest student minds










Convinced that The Captable stories and insights
will give you the edge?
Convinced that The Captable stories
and insights will give you the edge?
Subscribe Now
Sign Up Now