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Google’s philanthropic arm Google.org has committed $15 Mn in funding to nonprofit organisation The/Nudge (formerly The/Nudge Institute) to support the growth and digital enablement of Indian MSMEs (micro, small and medium enterprises).

The initiative aims to develop scalable AI tools that can help small businesses improve access to formal credit, discover new markets and navigate compliance requirements.

Besides, an open call for proposals to identify innovative solutions addressing challenges faced by MSMEs is also on the cards. The initiative also includes a multilingual AI platform to train talent in Tier III and Tier IV towns in job-ready skills and connect them with small businesses.

“By partnering with The/Nudge, we are putting open digital tools directly into the hands of small business owners, ensuring that India’s economic backbone is equipped to lead this technology shift,” Preeti Lobana, VP and country manager at Google India, said.

The initiative also aims to establish open standards that can help Indian MSMEs become more competitive, creditworthy and visible in global markets.

The funding comes amid growing efforts to leverage AI for improving productivity and expanding access to digital services among small businesses. For MSMEs, AI-powered tools could help simplify operational processes, improve access to information and address some of the barriers that limit their ability to scale.

India’s MSME sector continues to face structural challenges in accessing formal finance, expanding market reach and navigating compliance requirements. For smaller enterprises, limited access to business information and digital tools can further complicate these processes.

A World Economic Forum report published in October 2025 estimated that AI adoption could unlock $490-685 Bn in economic value for India’s MSME sector. 

Amid this, digital lenders have increased focus on MSMEs, which often have difficulty in raising formal credit despite being the country’s second largest employer.  New-age NBFCs like Indifi Capital, Techfino, Lendingkart, FlexiLoans, Aye Finance, among others, are leveraging tech to address this issue and provide credit to MSMEs. 

Prior to this, Google.org announced a $1 Mn grant to help improve news literacy in India and fight back against misinformation and fake news, in 2020. It has also given a grant of $3 Mn to non-profit organisations in India in 2018, to provide quality education in India through elearning.

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