Tech-led SMEs may contribute half to GDP

Ranchi: Technology powered by artificial intelligence and machine learning can increase small and medium enterprises' (SMEs) contribution to India's GDP to about 50 per cent from the present 30 per cent, according to b2b commerce and fintech startup OfBusiness. Artificial intelligence and machine learning can also enhance employment from 110 million to 175 million, particularly in tier-2 and tier-3 cities, it said.

"AI and technology transformation can scale-up SMEs production and then reach to 50 per cent contribution to the GDP from the current 30 per cent, and enhancing employment from 110 million to 175 million, particularly in tier-2 and tier-3 cities, would not be difficult. This would prove to be a major game-changer for the Indian economy," OfBusiness said in a statement. It said most SMEs are looking forward to adopting AI & ML in their business operations to upscale production. AI is also helpful towards the procurement of raw materials, connectivity, distribution network, innovative product solutions, debottlenecking, training of workforce, waste management, and more importantly, time-management, the company said. "Access to AI-enabled platforms for securing business opportunities, access to 'purchase financing' model for easy capital solutions, leveraging connectivity across India for raw-material and finished goods supply, aligning with educational institutions for operational efficiencies and debottlenecking, and adopting global transaction systems and procedures is going to be the key for SMEs while scaling up their businesses," said co-founder and CBO Nitin Jain.

He emphasised the SMEs need for AI-enabled platforms like ‘BidAssist' that provide information about 5 million government tenders in different categories, which can be sorted as per the requirement by incorporating relevant keywords. AI-enabled platforms like ‘Nexizo.