Govt Unveils AI Adoption Study For Manufacturing MSMEs At India AI Impact Summit 2026

New Delhi, Feb 18 (KNN) At the ‘Advancing AI Readiness and Adoption in Manufacturing MSMEs’ session on the second day of the India AI Impact Summit 2026 in New Delhi, a joint study by the National Institute of Smart Governance (NISG) and Athena Infonomics was launched under the aegis of Ministry of Electronics and Information Technology (MeitY) and the India AI Mission.

The study aims to develop a practical roadmap to accelerate Artificial Intelligence (AI) adoption among manufacturing micro, small and medium enterprises (MSMEs) across sectors such as textiles, pharmaceuticals (including medical devices) and electronics. Its findings are expected to inform targeted government interventions to strengthen manufacturing output, export competitiveness and employment generation.

The research will cover over 350 MSME manufacturing units across India, gathering insights from shop-floor operations to senior management to identify AI-driven improvements in productivity, unit economics and global market participation.

The discussion brought together senior representatives from MeitY, Ministry of MSMEs, Ministry of Textiles and the Department of Pharmaceuticals, along with policymakers, industry leaders and academia.

Officials Highlight Strategic Importance of AI

S. Krishnan, Secretary, MeitY, said, “The need for harnessing AI to enhance productivity, efficiency, and capabilities in the manufacturing MSME sector. He stated that the India AI Mission is committed to ensuring that AI meaningfully impacts real sectors of the economy, particularly in boosting manufacturing MSMEs.”

S. C. L. Das, Secretary, MSME, described AI as a ‘force multiplier’ for industry and said, “The industry would drive the AI-powered transformation of the Indian economy toward Atmanirbhar Bharat. He further pointed out that the confluence of AI at the shop floor level is crucial for MSMEs to become more competitive.”

Bhuvnesh Kumar, CEO, NISG, said the study would offer an implementable roadmap for MSMEs and highlighted AI’s role in supporting India’s ambition to become the world’s third-largest economy.

Rohit Kansal, Additional Secretary, Ministry of Textiles, noted that India’s AI dividend would be realised at the factory level, particularly in modernising legacy industries such as textiles and food processing.

Aman Sharma, Joint Secretary, Department of Pharmaceuticals, said AI could significantly reduce production costs and improve quality in a sector where MSMEs account for over 80 per cent of manufacturing units.

MSMEs’ Central Role in Economic Growth

As India works towards becoming a USD 35 trillion economy by 2047, officials noted that faster technology adoption, improved access to finance and stronger market linkages will be critical to sustaining MSME-led growth.

(KNN Bureau)