AI Integration in MSMEs: New Subsidies Announced for Tech Upgradation

December 10, 2025 Summary: The Ministry of MSME has introduced a dedicated component under the MSME Innovative Scheme to fund AI-driven technology adoption. Small manufacturing units can now avail themselves of subsidies for integrating AI in inventory planning, quality control, and demand forecasting. This is part of the government’s vision to make Indian MSMEs “Industry 4.0” ready by the end of 2026.

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