Gen AI to generate $621 bn in productivity for India; 30% to be SMBs: Report

India is heading into 2026 with a surge in entrepreneurial activity, according to LinkedIn’s latest Small Business Work Change India Report. The platform says the number of Indian members adding 'founder' to their profile has increased 104% in a year, while more than seven in 10 professionals want to work for themselves in the near future.

The report identifies three forces driving this shift: AI adoption, brand credibility and professional networks.

AI is becoming central to daily operations for small and medium businesses (SMBs). The report notes that 82% of SMB leaders say AI has made starting and running a business easier, and 97% already use it in some form. For 83%, AI is now critical to business growth.

AI literacy among companies with 11-200 employees has risen 52% year-on-year, with 81% of SMBs investing in AI capabilities. With generative AI projected to unlock $621 billion in productivity for India, the report estimates that SMBs could capture up to 30% of that value.

Speaking about the findings, Kumaresh Pattabiraman, India Country Manager, LinkedIn, said, “India's small businesses are moving with extraordinary speed and ambition. What sets India apart is the combination of rapid AI adoption, a strong skilling appetite, and the power of trusted professional networks. Together, these forces are reshaping how businesses build, scale, and succeed. As we enter 2026, India's SMBs aren't just keeping pace with global change - they're setting the direction. LinkedIn is committed to helping them build credibility, find talent, and unlock opportunity at every stage of their growth."

Globally, 61% of small-business owners now create content themselves, and 71% say authenticity online matters. In India, 82% of small-business marketers say buyers verify information with trusted people before making decisions, and 77% say networks play a major role in validating brands.

Short-form video has emerged as the most trusted global format, with 86% of SMB marketers calling it “the new language of the internet.” In India, 85% of marketers report that audiences increasingly follow real voices, customers, employees, partners and creators - to make better choices.

Professional connections are becoming more valuable, with 86% of Indian professionals saying relationships matter more than ever. Small-business professionals grew their LinkedIn networks by 28% year-on-year. Inside organisations, 88% say people skills have become even more important in the age of AI.

The report notes that 73% of India’s SMB professionals say trusted community input helps speed up decisions, while mentorship supports growth for 78% of SMBs with 11-200 employees.

To help small-business leaders build skills and visibility, LinkedIn is offering one month of free courses on AI for SMB growth, brand-building and small-business marketing through LinkedIn Learning.