Parliament Question: Adoption of Artificial Intelligence in MSME sector

GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES RAJYA SABHA UNSTARRED QUESTION NO. 4095 TO BE ANSWERED ON: 30.03.2026 ADOPTION OF ARTIFICIAL INTELLIGENCE IN MSME SECTOR 4095. SHRI I. S. INBADURAI: Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state: (a) whether Government has undertaken any initiatives to promote adoption of Artificial Intelligence and digital technologies among Micro, Small and Medium Enterprises (MSMEs) to enhance productivity, innovation and competitiveness, if so, details thereof; (b) whether any schemes, financial assistance or capacity-building programmes are being implemented to help MSMEs adopt AI-based tools for manufacturing, marketing, supply chain management and quality control, if so, details thereof; and (c) whether Government has conducted any study on the challenges faced by MSMEs in adopting AI technologies, including cost, skill gaps and digital infrastructure constraints, if so, findings thereof? ANSWER MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE) (a) to (c): The Government of India is taking measures to promote adoption of Artificial Intelligence (AI) and digital technologies, including for MSMEs. The IndiaAI Mission is a comprehensive initiative, approved by the Government on 7th March 2024 with a budgetary outlay of ₹10,371.92 crore. India AI mission encompasses key pillars of the AI ecosystem including, India AI Compute Capacity, India AI Innovation Centre, India AI Datasets Platform, India AI Application Development Initiative, India AI Future Skills, India AI Startup Financing etc. (c): No separate study specific to AI adoption by MSMEs has been conducted by the Ministry. However, Government periodically assesses the extent of digital adoption among Micro, Small, and Medium Enterprises (MSMEs), through evaluation studies in collaboration with industry and research institutions. The Output-Outcome Monitoring Framework of NITI Aayog’s is another institutional mechanism to evaluate the outcome. ****