Google backs Indian small businesses with AI tools to drive economic growth

Google India has declared artificial intelligence to be an economic equaliser capable of accelerating growth across small and medium-sized enterprises in India. Speaking at the Cloud Day India 2026 event in front of more than 600 business founders, managing directors and technology executives, Google India Vice President Preeti Lobana outlined how accessible technology gives smaller teams the speed, security and intelligence typically restricted to global corporations.

AI as an economic equaliser for Indian SMBs

Small and medium enterprises currently account for nearly one-third of India's GDP and over 35 per cent of its total manufacturing output. Lobana identified these growing firms as the main engine driving the nation towards its Viksit Bharat 2047 objectives, noting that digital adoption among smaller companies creates a positive ripple effect across supply chains into tier-two, tier-three and rural areas.

Many expanding enterprises worry about high integration costs and the need for massive technical teams. However, Google India stated that AI operates best when it is inclusive, allowing lean operations to eliminate daily friction and scale efficiently into new domestic and international markets.

Strengthening national infrastructure with $15 billion commitment

To ensure Indian businesses have access to modern computational resources, Google has committed $15 billion to expand the country's digital and AI infrastructure. This investment includes a flagship AI hub in Visakhapatnam, alongside new subsea internet cables designed to deliver low-latency computing power.

The infrastructure serves as a physical anchor for the government's IndiaAI Mission, providing equal technology access to every developer and firm across the country, from single-person ventures to large employers.

Key figures on India's small business AI push

Moving from pilot projects to real-world deployment

Google Cloud stated that Indian industry has progressed beyond initial testing into full business transformation. According to Taru Dahiya, Managing Director for SMB at Google Cloud Asia Pacific, the enterprises pulling ahead across the region are those turning AI into a continuous engine for growth rather than those with the largest technology budgets.

Indian firms are already demonstrating concrete operational gains through these platforms. Apparel manufacturer Siyaram's has deployed predictive analytics and inventory management systems to forecast demand across more than 40,000 products while using generative applications to streamline marketing workflows.