Small business owners in India turn to the power of AI
Almost all Indian small business owners said artificial intelligence was key to the success of their business, according to a recent GoDaddy Global Entrepreneurship survey.
Conducted among entrepreneurs and small business owners across India, it reveals insights into their outlook on AI technologies, as well as goals for business growth.
When it comes to AI tools, the top three reasons for investing were a positive impact on customer service (53%), potential for increased efficiency (41%) and improved decision-making through data-driven insights (40%).
Respondents identified key areas where AI could have the most benefit for their small business operations, citing marketing (65%), business planning and strategy (61%) and customer experience (52%). Overall, 97% of small business owners believe that digitalization has noticeably improved their work processes.
However, the business owners also had concerns about implementation AI tools including the lack of awareness about available solutions (50%), lack of understanding of the benefits (45%), potential costs (43%) and lack of time to implement these tools (29%).
GoDaddy’s survey results also found that 87% of respondents expect their business to grow in the next three to five years, with 40% expecting their business to grow at least 50% in that timeframe.
“AI is a valuable asset in targeting the right audience, measuring campaign effectiveness, and making informed business improvements among other benefits. With a spirit of innovation and an eye on the future, Indian small businesses are poised to unlock growth opportunities,” said Apurva Palnitkar, Senior Director Marketing, GoDaddy India.
“GoDaddy is a trusted partner for entrepreneurs on this journey, offering intuitive AI solutions alongside a comprehensive suite of tools and resources to empower entrepreneurs start and grow their businesses with confidence.”
India’s FY24 growth projected at 7.8%, says ICRA
India’s GDP growth is projected to moderate to a four-quarter low of 6.7% in the March quarter of the 2023-24 financial year, according to domestic ratings agency ICRA. For the full 2023-24 fiscal, ICRA estimates GDP growth to come in at 7.8%.
The Indian economy grew 8.2% in the June quarter, 8.1% in the September quarter and 8.4% in the December quarter of 2023-24, the agency said.
ICRA Chief Economist Aditi Nayar said lower volume growth, coupled with the dampening the profitability of some of the industrial sectors, is expected to dampen India’s gross value added (GVA) growth in Q4 FY2024. GVA is defined as the value of goods and services produced minus the value of the intermediate inputs that were used to produce those goods and services.
ICRA said the gap between gross domestic product (GDP) and gross value added (GVA) growth is likely to moderate to 100 basis points (bps) in Q4 FY2024 from the particularly high of 185 bps in the previous quarter.
ICRA said investment activity was healthy in the March quarter of FY2024, amid a mixed trend displayed by various investment-related lead indicators.
In that quarter there was a surge in new project announcements owing to a number of states committing to invest, and an appreciable increase in completions of both private and government-led projects, it said.
Meanwhile, Goldman Sachs has revised its GDP forecast for India, raising it by 10 basis points to 6.7% for 2024. The adjustment comes as the investment banking giant anticipates sustained growth momentum.
The updated forecast reflects Goldman Sachs’ confidence in India’s growth trajectory. Andrew Tilton, head of emerging markets economic research at Goldman Sachs, said that investment growth is expected to persist, driven by the additional fiscal capacity. The company also predicts that core inflation, which is anticipated to bottom out in the April-June period, will stabilise around 4% – 4.5% in the latter half of this year.
