Tech Explained: Here’s a simplified explanation of the latest technology update around Tech Explained: India Hits Critical Mass In Deep Tech AI, Set To Transform MSMEs And Drive Sovereign Tech Push, Says MeitY Secretary S Krishnan in Simple Termsand what it means for users..
Representational image. (Image Credit: India AI Impact Summit 2026)
New Delhi: India’s deep tech ambitions received a significant boost with the launch of the India Deep Tech Alliance (IDTA) report, as senior government officials underscored the growing convergence of innovation, investment, and policy support to accelerate artificial intelligence (AI) adoption across sectors, particularly in manufacturing MSMEs.
Speaking at the event, S Krishnan, secretary, Ministry of Electronics and Information Technology (MeitY), highlighted that India has now reached a “critical mass” in its deep tech ecosystem.
“There are innovators with investable ideas, experienced investors ready to back them, and a strong talent pool. This convergence shows that a robust ecosystem has been created,” he said, emphasizing that India is no longer in the early stages of experimentation but is entering a phase of scalable innovation.
AI for MSMEs: From Policy to Shop Floor
The focus of this conversation was on AI’s impact on transforming the enormous MSME sector in India, a major contributor to the overall growth of the economy. As Krishnan indicated, through the India AI Mission, we are committed to ensuring that AI achieves real-life benefits for the people in real economic sectors as manufacturing.
SCL Das, secretary, MSME, reiterated this vision by indicating that AI can be a “huge force multiplier” in dramatically increasing productivity and efficiency while improving competitiveness. “The real transformation will happen when AI reaches the shop floor,” Das said, adding that industry-led adoption will be key to driving India’s journey toward an Atmanirbhar Bharat.
The scale of the opportunity is immense. According to Economic Survey 2025–2026, the MSME sector contributes 31.1% towards India’s GDP, 35.4% of total manufacturing output and almost 48.6% of total exports. With India set to become a $35 trillion economy by 2047, the integration of AI into these enterprises is viewed as critical for maintaining the momentum of continued growth.
Nationwide Study to Map AI Adoption
To support this effort, a large-scale national study is taking place which will study more than 350 MSME manufacturing facilities throughout the country. This study will provide us with detailed information on how AI can be used to improve productivity, reduce costs and improve global access.
Bhuvnesh Kumar, CEO of the National Institute for Smart Government (NISG), said the study would provide an “implementable roadmap” for AI adoption in the sector.
“AI will play a pivotal role in India’s journey to becoming the third-largest economy globally,” he noted. Industry-specific insights were also highlighted during the session. Rohit Kansal, Additional Secretary, Ministry of Textiles commented that the situation with respect to the “AI dividend” for India will ultimately be found at the factory level of traditional industries such as textiles and food processing.
Similarly, Aman Sharma, Joint Secretary, Department of Pharmaceuticals, noted that AI could significantly reduce costs and improve product quality, especially for MSMEs, which constitute over 80% of manufacturing units in the sector.
Sovereign AI Models Take Centre Stage
Beyond industrial applications, the conversation also turned to the strategic importance of developing indigenous AI capabilities. Krishnan emphasised that India has consciously invested in building sovereign AI models to address concerns around bias, control, and data representation.
“Sovereignty is a very important issue. We need AI models where nobody else has the kill switch; it must remain with us,” he said. According to Krishnan, while there was initial discussion about global open-source models versus building indigenous models, the Government of India ultimately decided to build indigenous systems, to ensure Indian data, languages, and cultural context can be mapped properly.
A major Government of India initiative in this regard is BharatGen, which was established in October 2024. BharatGen will help develop AI solutions (such as Automatic Speech Recognition [ASR] and Text-to-Speech [TTS]) that reflect the linguistic diversity of India.
“For a country like India, it is critical that people can access AI in their own languages,” Krishnan said, adding that the goal is not merely to build large language models but to create practical tools for sectors like agriculture, science, and manufacturing.
Summit as a Catalyst for Collaboration
The sessions described above were part of AI Summit 2026 and were aimed at bringing together policymakers, industry leaders, and researchers to redefine the future of AI in India.
The theme was on how to get all stakeholders aligned on a common vision by ensuring that AI not only adds technological capabilities but also supports equitable and long-term economic growth.
Krishnan also highlighted the collaboration with authorities to overcome logistical constraints such as traffic for children taking the CBSE Exam and, and emphasised that the Government of India is also focused on citizen-centric planning in addition to governance.
He also talked about Prime Minister’s programme on 19th at Bharat Mandapam. “The day will begin with the inaugural plenary session, followed by a visit to the exhibition at Hall 14. Subsequently, the Leaders’ Plenary will take place, and the programme will conclude with bilateral meetings and a CEO roundtable.”