Kolkata, 30 June 2025:
The Federation of Associations of Small Industries of India (FASII) today hosted a National Seminar on “Digitalisation and AI in the Indian MSME Sector – Driving the Nation towards Becoming a Super Economic Power” at Kolkata. The Seminar brought together stakeholders from across India’s micro and small enterprises landscape to explore digital transformation, emerging technologies, and vital government support systems essential for MSME growth.
The event aimed to equip micro and small enterprises with key knowledge across six strategic focus areas:
- Digital & AI Transformation
- Policy Shifts in Trade, Industry, Labour & Fiscal Areas
- Government Schemes under the MSME Ministry
- Credit Access and Guarantee Mechanisms
- Technology Upgradation & Credit Sourcing
- Skill Development Initiatives
Driving the Digital and AI Shift
Speakers emphasized that digitalisation and AI integration are no longer optional but necessary for MSME survival and growth. Automation, digital marketing, resource optimisation, and enhanced customer engagement were highlighted as direct benefits. However, concerns over cyber security and data privacy were noted as ongoing challenges. AI was acknowledged as a transformative force, though adoption barriers such as cost, expertise, and lack of awareness must be addressed through customized, India-specific AI solutions.
Navigating Policy Changes
The seminar also shed light on significant structural reforms across industrial, trade, labour, and fiscal domains. Key highlights included:
- Simplification of export procedures and encouragement of E-commerce exports
- Promotion of FDI and public sector disinvestment
- Introduction of Labour Codes, ensuring minimum wages and social security for unorganised workers
- Fiscal consolidation through GST, rationalised tax rates, and a broader tax base
Government Schemes and Credit Facilitation
Officials presented a comprehensive overview of major MSME Ministry schemes, such as the Credit Guarantee Scheme, ZED Certification, Cluster Development Programmes, and NSIC services including Bill Discounting and Bank Credit Facilitation.
The seminar stressed the importance of credit availability, highlighting mechanisms such as the TReDS platform, MUDRA Yojana, and the SAMADHAAN portal to resolve delayed payments. Emphasis was laid on collateral-free loans and working capital norms to encourage borrowing for growth.
Technology and Skill Empowerment
The government’s flagship Credit Linked Capital Subsidy and Technology Upgradation Scheme (CLCS-TUS) and the consolidated MSME Champions Scheme were spotlighted as key enablers for driving competitiveness and innovation. These aim to modernise MSME operations, reduce wastage, and foster global excellence through cluster-based development and tech incubation.
On the skill development front, participants were introduced to national programmes such as PMKVY, NAPS, and JSS, all intended to align youth capabilities with industry requirements. The formation of the Ministry of Skill Development & Entrepreneurship (MSDE) marked a significant policy step toward a skilled India.
A Sector of National Importance
Contributing 30% to India’s GDP, accounting for 40% of exports, and providing employment to over 110 million people, the MSME sector remains the backbone of the Indian economy. Over 95% of MSME units operate as sole proprietorships, and despite various constraints, they continue to demonstrate resilience and innovation.
FASII, with its close ties to central and state government agencies, reiterated its commitment to serving the nation’s micro and small businesses. The organisation urged enterprises to embrace change, adopt modern technologies, and upskill to meet evolving market demands.
FASII’s Vision
Concluding the seminar, FASII expressed confidence that Indian MSMEs can play a pivotal role in transforming the country into a Superpower Economy. With the right knowledge, strategic support, and entrepreneurial spirit, India’s small businesses are poised to lead the charge into a digitally empowered future.
