India’s MSME sector is undergoing a steady digital transformation, according to Vi Business’s Ready for Next MSME Growth Insights Study 2025, released on World MSME Day. The study reports a national rise in the Digital Maturity Index (DMI) from 56.6 in 2023 to 58.0 in 2025, with 76% of MSMEs planning to invest in cybersecurity and 72% in cloud technologies—signals of a sector shifting from digital awareness to digital action.
Telangana leads the digital readiness scale with a DMI of 71.2, followed by Kerala (63.7) and Maharashtra (59.2). While Financial Services, Retail, and Transportation rank as the most digitally mature sectors, the report also indicates that only 12% of MSMEs have fully embraced digitalization, suggesting implementation challenges amid rising intent.
MSMEs are navigating this digital transition with cautious optimism. Local entrepreneurs, particularly in tourism, education, and retail, are beginning to adopt cybersecurity tools and cloud platforms to improve customer outreach and operational efficiency. However, limited capital access and a need for localized advisory services are slowing momentum.