IIT Madras, FaMe TN Partner to Accelerate AI and Digital Transformation for MSMEs in Tamil Nadu

IIT Madras has signed a Memorandum of Understanding (MoU) with FaMe TN (Bureau for Facilitating MSMEs) to accelerate artificial intelligence (AI) adoption, digital transformation, and Industry 4.0 implementation across Tamil Nadu's micro, small and medium enterprises (MSMEs).

The collaboration will be spearheaded by the Centre of Tech Excellence (CTE) at IIT Madras, with support from a Corporate Social Responsibility (CSR) grant provided by Walmart Global Tech. The initiative is aimed at strengthening the state's industrial ecosystem by equipping MSMEs with practical, affordable, and scalable digital technologies.

A major focus of the partnership is to develop low-cost, user-friendly AI and digital solutions tailored to the needs of MSMEs operating in manufacturing, retail, and allied sectors, enabling businesses to modernize without significant capital investment.

One of the key outcomes of the collaboration will be the creation of a Tamil Nadu MSME Digital Readiness and Adoption Index, a state-level framework designed to assess the digital maturity of enterprises and guide future technology adoption strategies.

The initiative will also provide digital readiness assessments, capacity-building programmes, technology demonstrations, and implementation support to help MSMEs adopt AI-driven workflows, shop-floor digitisation, and Industry 4.0 technologies. It also seeks to facilitate the development, technology transfer, and large-scale deployment of indigenous digital solutions, while fostering a collaborative government-academia-industry innovation ecosystem anchored at IIT Madras' Centre of Tech Excellence.

Highlighting the significance of the partnership, Prof. Raghunathan Rengaswamy of IIT Madras said the collaboration aims to integrate AI-enabled workflows, shop-floor digitisation, and Industry 4.0 tools into the daily operations of MSMEs. He added that by emphasizing practical, field-ready technologies and on-ground implementation, the initiative will improve productivity, enhance product quality, and strengthen the global competitiveness of MSMEs in sectors such as automotive, engineering, and fabrication.