The Government of India is taking measures to promote the adoption of artificial intelligence (AI) and digital technologies among Micro, Small and Medium Enterprises (MSMEs). The IndiaAI Mission was approved by the Government on the seventh March 2024 with a budgetary outlay of Rs 103,719.2 million (mn), equal to about Rs 103.72 billion (bn). The mission is described as a comprehensive initiative designed to strengthen the national AI ecosystem and to support technology diffusion across small businesses.

The mission encompasses key pillars including India AI Compute Capacity, India AI Innovation Centre, India AI Datasets Platform, India AI Application Development Initiative, India AI Future Skills and India AI Startup Financing. These components are intended to provide compute resources, research and development support, curated datasets, application development assistance, skilling programmes and financing pathways that aim to lower barriers to adoption for smaller firms. The initiative targets technological readiness across sectors.

The Government periodically assesses the extent of digital adoption among Micro, Small and Medium Enterprises through evaluation studies conducted in collaboration with industry and research institutions. The Output-Outcome Monitoring Framework of NITI Aayog is cited as an institutional mechanism to evaluate the outcome of such measures and to inform policy adjustments. Such assessment activities are intended to track progress and to identify areas requiring additional support.

The information was provided by the Minister of State for Micro, Small and Medium Enterprises Sushri Shobha Karandlaje in a written reply in the Rajya Sabha. The mission is expected to integrate compute capacity, innovation, datasets, application development, future skills and startup financing to facilitate digital transformation of MSMEs. The Government is positioning the mission as a means to enhance competitiveness and to foster innovation among small enterprises.