India's MSMEs power the economy, but most still aren't using AI

MSMEs are India's second largest economic engine, contributing 30.1% of GDP and 45.73% of exports, yet AI uptake in the sector remains thin. A BCIC summit on AI in manufacturing noted adoption in organized manufacturing is under 25%, and even lower among MSMEs, trailing behind China, Germany and the US. At her MSME Sparks 2026 masterclass, ‘Autonomous Retail: Rewriting the MSME Playbook with AI’, Fynd’s Chief Business Officer Ragini Varma said the hesitation stems from misunderstanding AI's role