Google Report Projects AI to Boost Indian MSME Profits by 35%

Google and the India SME Forum released a joint report on July 8, 2026, titled The Google Dividend: Measuring Digital Commerce's Contribution to India's Economic Future. The study projects that integrating artificial intelligence could unlock a 30–35% improvement in overall profitability for Indian micro, small, and medium enterprises (MSMEs).

Data in the report shows that digital adoption has already allowed nearly 60% of these enterprises to achieve double-digit revenue growth, with 66% reporting expanded market access. On a macroeconomic level, digital advertising among MSMEs is linked to approximately Rs 49,700 crore in economy-wide output and Rs 32,300 crore in Gross Value Added.

Government officials linked these technological shifts to the Viksit Bharat 2047 vision and the Udyam ecosystem. They argued that technology is democratizing market exposure and promoting formalization within grassroots commerce. The India SME Forum noted that digital tools and AI accessibility can help narrow structural disadvantages for smaller firms, though long-term success depends on how productively these businesses deploy such capabilities.