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Chapter 4 — Technology
Technology

AI as Economic Infrastructure: A Competitiveness Imperative for India's MSMEs

With MSMEs contributing 30% of GDP and 45% of exports, their AI readiness will determine whether India leads supply chains.

BP
Mr. Bala Prasad Peddigari
Chair, ICT & Startups Committee, FTCCI
February 2026 · 11 min

The global economic system is undergoing structural rebalancing. AI must be viewed as economic infrastructure critical to trade competitiveness.

AI is not just a technology; it is the new economic infrastructure that bridges the capability gap, enabling MSMEs to transition from participants to leaders.

AI and Trade Competitiveness

Global trade is governed by non-tariff factors: quality, traceability, compliance. AI addresses the asymmetry between MSMEs and large enterprises.

Policy Priorities

Focus on AI diffusion at MSME level. Support shared platforms for industrial clusters. Align skilling missions with AI-augmented roles.

AIMSMEsTrade CompetitivenessFTCCI

Discussion

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Sharad Mathur Mar 18, 2026
Framing AI as economic infrastructure rather than just technology is what policy makers need to hear.
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