Bhubaneswar Leads Odisha’s Tech Revolution as AI and Digital Banking Reshapes SME Landscape: Kotak
Small and medium enterprises (SMEs) across Odisha are undergoing a rapid digital transformation, with Bhubaneswar emerging as a key hub for innovation, fintech adoption, and AI-led growth. With over 19 lakh MSMEs contributing to the state’s economy across sectors such as textiles, handicrafts, food processing, and engineering, the shift toward AI-powered solutions and digital banking is unlocking new opportunities for efficiency, scalability, and global competitiveness.
To accelerate this momentum, the Government of Odisha has launched progressive initiatives including the Integrated Global FinTech Capability Hub and the Odisha IT Policy 2025, aimed at fostering digital skilling, innovation, and fintech integration among SMEs. These efforts are building a robust ecosystem where traditional enterprises can modernize operations, integrate with supply chains, and expand their market reach.
“We’re seeing three key shifts,” said Shekhar Bhandari, President – SME, Kotak Mahindra Bank. “AI is now embedded in workflows, linking trade documentation, payments, and receivables. Cluster-driven knowledge sharing is speeding up adoption. And SMEs are integrating AI with digital banking to improve cash-flow visibility and working capital efficiency.”
Kotak Mahindra Bank is playing a pivotal role in this transformation through its digital platform Kotak FYN, which offers paperless trade finance, seamless transactions, and AI-powered analytics across mobile, web, and APIs. In response to rising demand, the bank is expanding its footprint in Odisha to support local businesses in their digital journey. The platform is helping SMEs enhance cash-flow visibility, optimize working capital, and streamline financial operations—empowering them to compress business cycles, boost productivity, and compete on a global scale.
According to NITI Aayog, India’s broader AI strategy could contribute $500–600 billion to GDP by 2035, with SMEs playing a central role in this growth. Bhubaneswar’s emergence as a fintech and innovation hub positions Odisha at the forefront of this national transformation.