Transforming Small Businesses: An AI Playbook for India’s SMEs

The document "Transforming Small Businesses: An AI Playbook for India’s SMEs," published in August 2025, outlines a strategic framework aimed at enhancing the adoption of artificial intelligence (AI) within India's micro, small, and medium enterprises (MSMEs). The playbook identifies key challenges faced by MSMEs, such as operational inefficiencies and limited access to financial resources, and emphasizes the transformative potential of AI to improve productivity and competitiveness. The strategy prioritizes collaboration among stakeholders, including government, industry, and academia, to create an enabling environment for AI adoption. It introduces a three-pillar framework focusing on awareness, action, and recognition to guide MSMEs in their AI journey. The document also highlights the importance of tailored AI solutions and showcases successful use cases to inspire broader adoption. The overarching goal is to empower MSMEs to contribute significantly to India's economic growth, targeting a $7 trillion economy by 2030.