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Karnataka considering AI, digital framework in new MSME policy

The proposed policy will place technology and innovation at its core, enabling MSMEs to adapt to rapidly evolving global markets. As part of this approach, the government is exploring the introduction of specific AI and digital adoption frameworks for MSMEs to enhance productivity, competitiveness, and technological readiness.

March 11, 2026 / 22:14 IST
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Karnataka government is considering integrating Artificial Intelligence (AI) and digital transformation guidelines into its upcoming MSME policy to help local manufacturers prepare for future industrial challenges, Rohini Sindhuri, Secretary, Department of MSME, Sugar and Textiles, said.

She was speaking after inaugurating a state-level stakeholder consultation workshop organised at KASSIA Bhavan on Tuesday to gather industry inputs for the formulation of a comprehensive MSME policy.

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Sindhuri said Micro, Small and Medium Enterprises account for nearly 97 percent of the total industrial units in Karnataka and remain one of the largest generators of employment in the state. Recognising the sector’s importance, the government has initiated the process of drafting a dedicated policy to strengthen and modernise the MSME ecosystem.

“As the first step, we have organised this state-level stakeholder consultation workshop. In the coming weeks, similar regional-level consultations will be conducted across districts to ensure broader participation and industry feedback,” she said.