‘500 mn jobs, low output…’: Why BadCapital’s Arjun Malhotra feels AI is the best fix for Indian MSMEs

Arjun Malhotra, the founding partner in Badcitalvc, moved to X (previously Twitter) to provide a sharp condition of how artificial intelligence (AI) converted MSME scene in India. “Sory-by nine in the morning, Rajish, the owner of the textile factory in Surat, has already dealt with three different crises-a delay in presenting the fabric, a missing factor, and an angry client. His day reflects the day of millions of owners of its owners in India throughout India who wear each hat in their work, and they are launched in the organization of disorganized.”

“This is the daily grinding of the daily institutions of India, which is 63 million small, medium and medium -sized companies (MSMES) that employ more than 500 million people – more than the entire European Union residents. But despite these huge workforce, productivity is still amazing. The average Indian worker generates only $ 7,000 in annual production, compared to 80 thousand dollars in economies Advanced.

“The problem is not an ambition or a workforce. It is the system design,” says Malhotra, whose company builds a thesis on the capabilities of Amnesty International to cancel the next stage of the growth of Indian companies.

In advanced markets, 15-20 % of the workforce is usually taken by planning, coordination and project management-“synchronization layer”, as it calls it malehotra. In India, this burden often depends only on the employer, which presses a full function in one exhausting individual.

“We have hands to build and see a dream, but we miss the middle class that binds it all,” he noticed.

Traditional tools such as ERPS, logistics applications, and UPI helped track operations but often documenting what actually happened. “The program tells you about what happened yesterday,” Malhotra says. “AI can tell you about what should happen tomorrow.”

MygnIE, one of the BadCapital wallet companies, is already applying AI to solve this gap. When a worker says, “कल व क के लिए खत खत हो ह है” (

“Artificial intelligence allows advanced planning to access companies with low margins restricted to resources.” By operating thousands of MSMES simultaneously, artificial intelligence makes high-quality coincidence that is widely accessible-which previously concerns me for large institutions.

As Malhotra says: “We do not lack people. We lack the workflow. Amnesty International can be the synchronization class that turns chaos into coordinated implementation.”