Business report publication

PwC-ORF Report on AI's Impact on Indian MSMEs

Analysis based on 9 articles · First reported Mar 07, 2026 · Last updated Mar 08, 2026

Sentiment

Attention

Articles

Market Impact

Direct

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Market Impact

The report highlights a significant growth opportunity for India's manufacturing Micro, Small, and Medium Enterprises (MSMEs) through AI adoption, potentially contributing trillions to the economy by 2047. This positive outlook could attract investment into India's manufacturing sector and technology infrastructure.

Manufacturing Technology Consulting

Event Summary

A joint report by PwC and Observer Research Foundation, titled 'Unlocking the AI Edge for MSMEs,' projects that Artificial Intelligence (AI) could contribute between USD 135.6 billion and USD 149.9 billion to India's manufacturing Micro, Small, and Medium Enterprises (MSMEs) by 2035. The report suggests that if India increases its manufacturing share of GDP to 25% and MSMEs raise their contribution to manufacturing gross value added (GVA) to 50% by 2047, they could unlock growth opportunities worth USD 3.13-3.21 trillion. The study emphasizes the need for MSMEs to adopt AI on shop floors and leverage the technology to become active partners in global value chains. It also identifies a USD 100-150 billion market for non-technical manufacturing products for AI infrastructure and chip manufacturers, a sector where MSMEs are active. AI is seen as a tool to help MSMEs overcome structural constraints, improve consistency, meet global standards, and expand output faster, transforming them into competitive value creators.

Key Actions

90 PwC published report Observer Research Foundation

80 India increase manufacturing share of GDP

Entities Involved

cnt

India

India's manufacturing sector, particularly its Micro, Small, and Medium Enterprises (MSMEs), stands to gain significantly from AI adoption, with projections of substantial value creation and GDP contribution. This could lead to economic growth and increased global competitiveness for India.

Importance 100 Sentiment 60

priv

PwC

PwC, in collaboration with Observer Research Foundation, published a report highlighting the significant economic potential of AI for Micro, Small, and Medium Enterprises (MSMEs) in India's manufacturing sector. This report enhances PwC's reputation as a thought leader in technology and economic development.

Importance 90 Sentiment 50

ngo

Observer Research Foundation

Observer Research Foundation, in collaboration with PwC, co-authored a report on the impact of AI on Micro, Small, and Medium Enterprises (MSMEs) in India. This collaboration strengthens its position as a key research institution influencing policy and industry.

Importance 80 Sentiment 50

per

Sanjeev Krishan

Sanjeev Krishan, Chairperson of PwC in India, emphasized the importance of AI for Micro, Small, and Medium Enterprises (MSMEs) to improve productivity and competitiveness, advocating for a human-centric approach to AI adoption.

Importance 30 Sentiment 50

per

Samir Saran

Samir Saran, President of Observer Research Foundation, highlighted that India's AI moment will be defined by its diffusion across the industrial economy, with Micro, Small, and Medium Enterprises (MSMEs) at the heart of this transformation.

Importance 30 Sentiment 50

Relationships

PwC related ↔ Observer Research Foundation

Sanjeev Krishan related ↔ PwC

Samir Saran related ↔ Observer Research Foundation

PwC related ↔ India

Observer Research Foundation related ↔ India

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