Not Just Smart, But Street Smart: India’s MSMEs Demand AI with Grit

India's micro, small, and medium enterprises (MSMEs) are demanding an Indian AI revolution. While Big Tech AI solutions are suitable for big companies, Indian MSMEs need low-cost, bespoke, and sector-specific solutions suitable for their distinctive operating realities.

Key Takeaways:

 

1. Incongruity in AI Solutions

A majority of AI applications are for affluent enterprises. MSMEs need plug-and-play applications that are inexpensive, easy to implement, and flexible to adapt to local processes.

 

2. Technical and Financial Barriers

As per NITI Aayog's May 2025 report, 59% of MSMEs are unable to adopt AI due to lack of funds. Infrastructure, training, and tool costs are still key obstacles.

 

3. Need for Customisation

MSMEs span a wide range of sectors—retail to logistics to manufacturing. Every one of them has AI tailored for its needs, e.g., customer footfalls analysis, compliance for safety, or cargo scanning.

 

4. Expert Voices Call for 'Desi AI'

Experts like Anoop G Prabhu (Vehant Technologies) and Manoj Dhanda (Utho Cloud) explain that AI must be localised—not just in language, but also in logic. Business-specific flows, not general models, must be customized for it. 5. Policy Push and Innovation Opportunity The government's AI initiative, aligned with MSME competitiveness, is a timely boost. It is argued by experts that scalable, India-first AI can unleash productivity and innovation in the industry. 

 

Sources: The Economic Times, NITI Aayog Report, BusinessWorld, NewsOnAir