India’s MSME sector stands at a defining point of transformation. Employing 32.9 crore people and contributing nearly 30 percent to the nation’s GDP, MSMEs are the backbone of India’s economic engine-yet they face deep structural challenges in talent readiness, productivity, digital adoption and sustainability compliance. As global value chains evolve, AI automation and green mandates accelerate, MSMEs must transition from labor driven operations to future ready, skill powered enterprises.
This report provides a strategic, future focused blueprint for building AI ready MSMEs, strengthening digital fluency, accelerating green capabilities, and creating inclusive, scalable talent pipelines. The paper outlines how MSMEs can shift from reactive hiring to deliberate skill creation, using structured apprenticeships, cluster-based ecosystems, and government schemes as force multipliers. With 45 percent of core skills expected to change by 2030 and green skills projected to grow 40 percent, the next decade demands a workforce equipped for AI integration, operational excellence, digital commerce, ESG compliance and continuous learning.
Against this backdrop, the report sets out a clear, actionable and execution ready roadmap to build a future proof MSME workforce-one capable of competing globally, scaling sustainably and powering India's growth to 2030 and beyond.
