Oracle NetSuite sees Tier-2 cities as biggest growth opportunity in India, bets on AI-led SME expansion

India is one of Oracle NetSuite’s highest-priority markets, with smaller businesses increasingly using artificial intelligence (AI) and cloud technology to expand into new states and overseas markets, a senior company executive said. The company sees Tier-2 cities as its biggest growth opportunity in India, as technology helps small and medium-sized enterprises (SMEs) access capabilities that were previously available largely to larger organisations.

Speaking to PTI on the sidelines of Oracle AI World, Amit Suxena, group vice president and head of Asia at Oracle NetSuite, said momentum among Indian businesses had strengthened over the past four to five years. He attributed the shift partly to India’s young population, which is increasingly familiar with cloud-based platforms and AI tools, reducing reliance on legacy technology systems.

“One of the biggest advantages India has is that we have a young population which is actually now native to using cloud and AI,” Suxena said.

AI helps smaller businesses expand beyond home markets

Suxena said technology was enabling smaller businesses to expand beyond the cities in which they originated, marking a shift in the geography of business growth. Earlier, large companies could deploy specialist teams to assess new markets, regulatory requirements and commercial risks. AI tools are now helping smaller firms perform similar tasks with fewer resources.

Businesses can use AI to examine regulations in other states, evaluate potential markets, decide where to expand or withdraw, and manage uncertainties such as currency fluctuations, he said.

The trend is creating opportunities for enterprise software providers as smaller businesses seek technology to support expansion, operational efficiency and decision-making. Suxena said NetSuite was seeing significant momentum among businesses expanding within India.

Cost concerns constrain technology adoption in Tier-2 cities

Despite the opportunity, technology adoption outside major metros continues to lag, partly because small traders and entrepreneurs remain concerned about the cost of implementation.

Suxena said the company was working to demonstrate that adopting AI need not be as expensive or complex as many smaller businesses assume. Beyond Tier-2 cities, NetSuite is bullish on sectors including software services, chartered accountancy, insurance, manufacturing, retail, and food and beverage.

The opportunity for enterprise technology providers lies in converting interest into adoption among businesses that have traditionally operated with limited digital infrastructure.

NetSuite stresses safeguards for AI agents

Addressing concerns about AI agents taking unintended actions, Suxena said robust checks and controls were essential. He said NetSuite had built rules into its systems to ensure business owners retained control over the actions AI agents could take on their behalf.

Drawing a parallel with the shift to cloud computing, he warned that businesses that delayed technology adoption risked falling behind competitors that moved earlier.

Suxena urged companies to adopt AI to identify growth opportunities they might otherwise overlook, arguing that the technology could help businesses act on opportunities sooner rather than wait for market changes to force a response.