Chennai, July 29:Indian Institute of Technology Madras has partnered with the Bureau for Facilitating MSMEs of Tamil Nadu , a State Government agency to support micro, small and medium enterprises , to accelerate digital transformation, Artificial Intelligence adoption and capability building across the State’s MSMEs ecosystem.
The collaboration will be led by IIT Madras’ Center of Tech Excellence supported by a CSR grant from Walmart Global Tech. It works towards digital empowerment of MSMEs operating in manufacturing, retail and aligned sectors.
The solutions developed through this collaboration will be low-cost and user-friendly, making them appropriate for MSMEs that require accessible and scalable technologies without major capital investments. A MoU towards this collaboration was signed between FaMeTN and IIT Madras.
The key outcomes envisaged from this collaboration include the development of a State-level MSME Digital Readiness and Adoption Index to assess the digital maturity of MSMEs across Tamil Nadu. The collaboration will support AI, Digital Transformation, and Industry 4.0 adoption through digital readiness assessments, capacity-building programs, technology demonstrations, and implementation support.
It will also facilitate the development, technology transfer, and large-scale deployment of indigenous digital solutions while establishing a collaborative Government–Academia–Industry innovation ecosystem anchored at the Centre of Tech Excellence, IIT Madras.
Elaborating on this collaboration, Prof. Raghunathan Rengaswamy, IIT Madras, said,
“This partnership aims to integrate AI-enabled workflows, shop-floor digitisation and Industry 4.0 tools into the daily operations of MSMEs in TN. By focusing on practical, field-deployable technologies and on-ground interventions, the initiative seeks to enhance productivity, improve product quality and strengthen the global competitiveness of small and medium manufacturing units across sectors such as automotive, engineering and fabrication.”
As part of this collaboration, IIT Madras and FaMe TN will work together to help MSMEs adopt affordable and indigenous digital solutions designed specifically for Tamil Nadu’s industrial landscape. The initiative also aims to develop long-term digital capabilities among entrepreneurs, supervisors, and shop-floor workers by providing continuous training, hands-on digital labs, and masterclasses. Cluster-specific diagnostics, baseline studies and applied research will provide deeper insights into operational challenges faced by MSMEs and shape solutions tailored to local needs.
Looking forward to high-impact outcomes benefiting the MSMEs of Tamil Nadu, Mr. V. S. Venkatesan, General Manager, FaMeTN, said,
“In the next couple of years, the partnership will focus on conducting extensive field engagements. This includes readiness assessments for MSMEs, pilots using Centre for Excellence in Manufacturing Analytics, IIT Madras-developed digital tools and creation of training resources and case studies drawn from real cluster experiences. These efforts are expected to support MSME units in addressing inefficiencies such as inconsistent product quality, manual documentation and unplanned machine downtime. Solutions such as AI-driven anomaly detection, production analytics dashboards and smart quality inspection systems are expected to bring immediate, measurable improvements in yield, transparency and workflow digitisation.”
In the longer term, the collaboration aims to scale digital adoption across thousands of MSMEs in Tamil Nadu. This partnership is unique in its triple-helix design, bringing together the strengths of Government , Academia and Global Industry. It prioritises implementation over theory, with a strong emphasis on pilots, cluster-level digital interventions and measurable outcomes.
The Center for Tech Excellence at IIT Madras brings deep expertise in AI, Machine Learning, data analytics and digital system development. It has already trained or engaged more than 1,000 participants through workshops, demonstrations and collaborative projects. Its solutions have supported MSME units in automating data capture, introducing real-time monitoring and applying predictive insights to improve efficiency and reduce variability in production environments.