AI integration could deliver up to $150 billion to manufacturing MSMEs by 2035. According to a PwC report, Indian micro, small, and medium enterprises in manufacturing stand to unlock substantial growth opportunities if they increase their contribution to manufacturing gross value added from 35.4 percent to 50 percent. The report projects MSMEs could unlock $3.13-3.21 trillion in growth opportunities by 2047. Beyond direct production, a significant demand-side opportunity exists for MSMEs to supply non-technical manufacturing products to AI infrastructure and chip manufacturers, with a market valued between $100 billion and $150 billion. AI adoption on shop floors enables these firms to leapfrog structural constraints and escape the low-productivity trap through applications like predictive maintenance, quality control, and inventory management.
