The Economic Survey correctly frames AI as infrastructure, but it misses the true regime change. AI isn’t just a productivity tool; it’s a tool for collapsing uncertainty. India’s growth has long been throttled by volatility and high capital costs. By shifting from manual information processing to systematic decision processing, AI stabilizes cash flows and makes Indian MSMEs legible to global lenders. This is the most powerful growth unlock since liberalization.

Davos views AI through the lens of efficiency, but in India, the challenge isn't optimization—it’s variance. With 65 million MSMEs, the hurdle to credit isn't a lack of profit, but unstable cash flows. AI’s true role here is resolution over automation. By collapsing variance and making small businesses "legible" to lenders, AI unlocks capital at scale. The result isn't a tech boom, but a fundamental repricing of the Indian economy.

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