India, despite being the world’s largest economy, sees manufacturing contribute only about 17% to its GDP. Nearly 70% of Indian manufacturers face challenges related to inefficiencies, directly impacting their profitability. Key issues observed across various manufacturing facilities include operational inefficiencies, skill shortages, inconsistent quality control, underutilization of advanced technologies, and poor scalability. In order to address these issues and achieve the Sustainable Development Goals (SDGs), this study supports the integration of Artificial Intelligence (AI) and Machine Learning (ML) approaches in the fundamental engineering disciplines. AI and ML skills give advanced ways to address inefficiencies, resource optimization use, enhance product quality, and promote scalable manufacturing practices. Furthermore, this paper examines how AI and ML can be used for Micro, Small, and Medium-Sized Enterprises (MSMEs) in the Indian industrial sector, highlighting the contribution of digital transformation to increased competitiveness, sustainability, and productivity. The findings suggest that leveraging AI and ML can provide actionable solutions to overcome the barriers faced by Indian manufacturers, driving sustainable industrial growth.