MSME Day 2025 - Digital Maturity Roundup
India's MSMEs show mixed digital adoption, but persistent hurdles like low awareness, high costs, skill gaps, and cybersecurity concerns
On the occasion of MSME Day, as I look at the landscape of Indian Micro, Small, and Medium Enterprises (MSMEs) in 2025, it's clear that a significant shift towards digitalisation is well underway. I observe an uneven uptake in the adoption of digital tools and technologies.
Several crucial government initiatives, such as those highlighted in the MSME TechTrack Report by CeDISI Trust, are playing a pivotal role in accelerating this digital journey. This report also points out that while over 98% of registered MSMEs in India are "Micro," there's a need to recognise smaller groups within this, like "Early" and "Nano" enterprises, who have very different needs.
Insights from studies such as the Vi MSME Digital Maturity Index (DMI) further underscore both the progress made and the challenges that remain. For example, the DMI shows that MSMEs with a turnover of less than ₹10 Crore score 55 on digital maturity, while those with a turnover between ₹50-₹100 Crore score 58, and those above ₹100 Crore score 68. This highlights that larger MSMEs are generally more digitally mature.
Yet, I can't help but notice the persistent hurdles. Many MSMEs still struggle with a lack of awareness about the right solutions, the perceived high cost of implementation, and perhaps most critically, a significant skill gap among their workforce. Looking ahead, cybersecurity will become an increasingly critical concern that these enterprises must proactively address as they deepen their digital footprint.