AI and ML: Transforming India’s SME Landscape
Potential Economic Growth Driven by Technology
Technology powered by artificial intelligence (AI) and machine learning (ML) holds the potential to elevate the contribution of small and medium enterprises (SMEs) to India’s GDP from the current 30% to approximately 50%. This insight comes from OfBusiness, a B2B commerce and fintech startup.
Impact on Employment
In addition to enhancing GDP contributions, the integration of AI and ML is projected to increase employment opportunities from 110 million to 175 million, particularly benefiting tier-2 and tier-3 cities across India.
A Game-Changer for the Indian Economy
According to OfBusiness, the transformation journey powered by AI and technology could significantly boost SME production and redefine their impact on the economy. Such a shift is anticipated to be a major game-changer for India’s economic landscape.
Adopting AI and ML in Operations
Many SMEs are expressing a keen interest in adopting AI and ML within their operations to enhance productivity. Embracing these technologies could lead to more efficient production processes and better market competitiveness.
AI in Procurement and Supply Chain
AI also plays a crucial role in several operational aspects, including procurement of raw materials, optimizing connectivity, enhancing distribution networks, creating innovative product solutions, and waste management. These improvements ultimately aid SMEs in effective time management.
Key Strategies for SMEs
Nitin Jain, co-founder and Chief Business Officer of OfBusiness, highlighted the importance of adopting AI-enabled platforms. These platforms can facilitate access to business opportunities, including a ‘purchase financing’ model for seamless capital solutions, linking SMEs with educational institutions to enhance operational efficiency, and aligning with global transaction systems.
Importance of Tenders and Business Opportunities
Jain emphasized the necessity for SMEs to access platforms like ‘BidAssist’, which provides insights into over 5 million government tenders, enabling businesses to filter opportunities based on their specific needs.
Real-Time Data for Competitive Advantage
AI-driven platforms such as ‘Nexizo.AI’ empower SMEs by providing real-time commodity pricing and tailoring tender opportunities to match specific business profiles. This can enhance decision-making and competitive positioning in the marketplace.
Financial Solutions for SMEs
OfBusiness’s financial arm, Oxyzo, has developed a ‘Purchase Financing’ model aimed at providing structured financial solutions tailored to the needs of SMEs, thereby promoting their growth and scalability.
Connectivity: A Critical Component
Connectivity remains a vital factor in facilitating the transportation of materials, not only domestically but also internationally. This is integral for SMEs seeking to expand their market reach beyond India’s borders.
Collaboration with Educational Institutions
Jain recommends collaboration with educational institutions, particularly in engineering and management, to tackle critical challenges faced by SMEs. Such partnerships can foster innovative solutions and skill development.
Expanding Reach Across India
OfBusiness claims that its connectivity network spans 26 states and seven union territories in India, aiding approximately 2 million SMEs in the safe transportation of raw materials and finished goods.
Transport Efficiency Achievements
In 2024, OfBusiness engaged with over 4,000 transporters nationwide, successfully delivering 170,000 consignments, demonstrating the effectiveness of its logistics solutions.
International Expansion
The company has extended its operations globally, exporting materials to 15 countries including Australia, the UK, France, Germany, and Brazil, showcasing its capabilities in the international arena.
Future Plans: Going Public
Looking ahead, OfBusiness is preparing for a significant $1 billion initial public offering (IPO) in the fiscal year 2025-26, signaling its growth ambitions and confidence in the ever-evolving SME sector.
India’s Growing Global Presence
Jain confidently asserts that India is emerging as a pivotal business market on the global stage. This promising trajectory suggests that the country could become the third-largest economy in the world and achieve the $10 trillion target sooner than anticipated.
Conclusion
With an increasing focus on AI and ML, Indian SMEs stand on the brink of a transformative era. By embracing technology and implementing strategic solutions, these enterprises can significantly contribute to the nation’s economic growth while creating vast employment opportunities.
Frequently Asked Questions
1. What is the potential GDP contribution of SMEs in India with AI and ML integration?
The contribution is expected to rise from 30% to around 50%.
2. How many jobs could AI and ML create in India?
AI and ML could enhance employment opportunities from 110 million to 175 million.
3. What is the role of platforms like ‘BidAssist’ and ‘Nexizo.AI’?
‘BidAssist’ helps SMEs find government tenders, while ‘Nexizo.AI’ provides real-time commodity prices and tailored opportunities.
4. How does OfBusiness support SMEs financially?
OfBusiness provides structured financial solutions through its financial arm, Oxyzo, offering a ‘Purchase Financing’ model.
5. What are OfBusiness’s future plans regarding IPO?
The company is planning to launch a $1 billion IPO in the fiscal year 2025-26.
