India, Germany launch AI group for SMEs

The Bundesverband Mittelständische Wirtschaft (BVMW), Germany’s Federal Association of Small and Medium-Sized Businesses, and IT industry lobby Nasscom have partnered to accelerate artificial intelligence adoption among German small and mid-sized firms.

The initiative, titled “AI for Mittelstand,” a reference to Germany’s network of often family owned, export-oriented small and medium-sized enterprises, will establish a structured working group to connect German companies with AI expertise from Nasscom member firms.

Both organizations are set to sign a memorandum of understanding (MoU) to deepen industry collaboration and promote practical, business-led AI deployments.

The program forms part of the broader India–Germany AI Pact, launched in February to strengthen implementation-focused cooperation between the two countries.

The pact is supported by India’s Ministry of Electronics and Information Technology (MeitY) and German stakeholders, including the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), Germany’s international development agency, which facilitates bilateral digital and innovation partnerships.

The working group will focus on exchanging best practices, developing deployment models, and addressing shared challenges in enterprise AI adoption.

A Nasscom-led industry delegation, along with representatives from MeitY, will participate in the launch.

Nasscom president Rajesh Nambiar said the initiative provides a mutually beneficial collaboration model.

“Germany stands to gain access to India’s scalable AI solutions and a deep pool of digital talent, while India benefits from enhanced market access into high-value industrial sectors,” he said.

Andreas Jahn, a member of BVMW’s executive board, said the partnership brings together “German engineering excellence and Indian software leadership,” adding that it could strengthen the competitiveness of SMEs in both economies.

Ulrike Ebeling, country director of GIZ India, said the working group demonstrates how ambitions outlined under the Indo-German Digital Dialogue are translating into concrete action.