**Executive Summary**
The document reports on a session titled "Advancing AI Readiness and Adoption in Manufacturing MSMEs" held at the India AI Impact Summit 2026 in New Delhi. During the session, a study jointly undertaken by the National Institute of Smart Governance (NISG) and Athena Infonomics, under the aegis of MeitY and the India AI Mission, was launched. The study will focus on accelerating AI adoption in MSMEs to boost national manufacturing output and export competitiveness. By 2047, India aims to become a $35 trillion economy.
**Key Points / Main Content**
* **Session Overview:**
* The session was part of the India AI Impact Summit 2026.
* It brought together key Ministries, policymakers, industry representatives, and academia.
* **AI's Role:**
* AI is seen as a "great force multiplier" for industry and essential for achieving Atmanirbhar Bharat.
* AI will play a pivotal role in India becoming the third-largest economy.
* **Study Launch:**
* A study by NISG and Athena Infonomics was launched under the aegis of MeitY and the India AI Mission.
* The study will focus on developing a practical roadmap to accelerate AI adoption in manufacturing MSMEs across sectors like textiles, pharmaceuticals, and electronics.
* **Economic Impact:**
* MSMEs contribute significantly to India's GDP (31.1%), manufacturing output (35.4%), and exports (48.6%).
* AI adoption in MSMEs is crucial for achieving India's goal of becoming a $35 trillion economy by 2047.
* AI is expected to modernize legacy industries and improve MSME competitiveness, quality, and reduce costs.
* **Study Details:**
* The study will cover over 350 MSME manufacturing factories.
* It aims to identify AI interventions to improve unit economics, enhance product-service extension, and expand global market access.
* MSMEs represent over 80% of the manufacturing units in the sector.
**Impact Analysis**
**Ministry of Electronics and Information Technology (MeitY)**
* **Impact:** Overseeing the India AI Mission and supporting studies to promote AI adoption.
* **Action Required:** Continue supporting initiatives that foster AI integration in MSMEs.
**Ministry of Micro, Small and Medium Enterprises (MSME)**
* **Impact:** Driving AI-powered transformation in the MSME sector.
* **Action Required:** Implement the roadmap developed by the study to accelerate AI adoption among MSMEs.
**MSME Manufacturing Factories**
* **Impact:** Enhanced productivity, efficiency, and global competitiveness through AI adoption.
* **Action Required:** Participate in the study, adopt AI solutions based on the roadmap, and modernize legacy systems.
**National Institute of Smart Governance (NISG) and Athena Infonomics**
* **Impact:** Tasked with conducting the study and developing the roadmap for AI adoption.
* **Action Required:** Execute the study covering 350 MSME manufacturing factories and deliver a practical roadmap for AI adoption.
Key Entities Referenced
India AI Mission: A national initiative to ensure AI has a meaningful impact on the Indian economy, particularly in the manufacturing MSME sector.
Ministry of Electronics and Information Technology (MeitY): The primary ministry involved in the AI adoption initiative, under whose aegis the study was launched.
India AI Impact Summit 2026, New Delhi: Location where the session on 'Advancing AI Readiness and Adoption in Manufacturing MSMEs' was held.
National Institute of Smart Governance (NISG): Organization that jointly undertook the study to develop a roadmap for AI adoption in manufacturing MSMEs.
Ministry of Micro, Small and Medium Enterprises (MSME): Ministry involved in the AI adoption initiative in the MSME sector.
Ministry of Electronics & IT
“Advancing AI Readiness and Adoption in
Manufacturing MSMEs” Session Held at India AI
Impact Summit 2026, New Delhi
“India AI Mission committed to ensure AI has a meaningful
impact on real sectors of the economy, especially
manufacturing MSMEs” says, Shri S. Krishnan, Secretary
MeitY
“AI is a ‘Great Force Multiplier’ for Industry and Atmanirbhar
Bharat” says, Secretary MSME
“AI Will Play a Pivotal Role in India’s Journey to Becoming the
Third-Largest Economy” says, Shri Bhuvnesh Kumar, CEO
NISG
Posted On: 17 FEB 2026 7:52PM by PIB Delhi
A high-level thematic session titled “Advancing AI Readiness and Adoption in Manufacturing
MSMEs” was held today on the second day of the India AI Impact Summit 2026 in New Delhi. The
session brought together key Ministries of the Government of India, including the Ministry of
Electronics and Information Technology (MeitY), Ministry of Micro, Small and Medium
Enterprises (MSME), Ministry of Textiles, and the Department of Pharmaceuticals (Ministry of
Chemicals & Fertilizers), along with policymakers, industry representatives, and academia.
During the session, a study jointly undertaken by the National Institute of Smart Governance (NISG)
and Athena Infonomics, under the aegis of MeitY and the India AI Mission, was launched. This study
will focus on developing a practical and operational roadmap to accelerate AI adoption in manufacturing
MSMEs across sectors such as textiles, pharmaceuticals (including medical devices), and electronics. The
findings will inform MSME adoption pathways and guide government interventions that directly impact
national manufacturing output, export competitiveness, and employment outcomes.Shri S. Krishnan, Secretary, MeitY, emphasized 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.
In his address, Shri S. C. L. Das, Secretary, MSME, highlighted AI as a “great force multiplier” and
emphasized that 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.
According to the Economic Survey 2025–26, the MSME sector contributes approximately 31.1% of
India’s GDP, accounts for 35.4% of total manufacturing output, and 48.6% of the country’s exports.
Given that manufacturing is a key driver of India’s ambition to become a $35 trillion economy by 2047,
accelerating technology adoption, improving access to finance, and strengthening market linkages will be
vital to future-proofing MSMEs' contribution to national economic growth.
This study will cover over 350 MSME manufacturing factories across India, gathering a granular,
experience-based understanding from the shop floor to senior management. The research aims to identify
AI interventions that can materially improve unit economics, enhance product-service extension, and
expand global market access and participation.
Shri Bhuvnesh Kumar, CEO of NISG, expressed his enthusiasm about undertaking this study, noting
that it would provide an implementable roadmap for driving AI adoption among manufacturing MSMEs.
He further emphasized that AI will play a pivotal role in India’s journey to becoming the third-largest
economy globally.
Shri Rohit Kansal, Additional Secretary, Ministry of Textiles, stressed that India’s AI dividend will be
realized on the factory floor. He underlined that the long-term economic shift of India will depend on
whether AI can modernize legacy industries such as textiles, food processing, and more.Shri Aman Sharma, Joint Secretary, Department of Pharmaceuticals, pointed out that AI can significantly
reduce costs and improve the quality of production for MSMEs, which represent over 80% of the
manufacturing units in the sector.
The thematic session formed an essential part of the India AI Summit 2026, serving as a platform for
structured dialogue, knowledge exchange, and coordinated action across various stakeholders in the AI
ecosystem.
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