Vi Business Releases ‘Ready for Next MSME Growth Insights Study 2025’ on World MSME Day
Vi Business, the enterprise arm of Vodafone Idea Ltd (Vi), unveiled the third edition of its flagship report, ‘Ready for Next MSME Growth Insights Study 2025’, to mark World MSME Day. The study presented a detailed analysis of the digital transformation journey of India’s Micro, Small, and Medium Enterprises (MSMEs), reflecting a clear rise in digital maturity alongside continued challenges in adoption, execution, and investment.
The study revealed that India’s national Digital Maturity Index (DMI) climbed from 56.6 in 2023 to 58.0 in 2025, indicating a positive shift in digital awareness and intent among MSMEs. However, despite this growth, only 12% of MSMEs had achieved full digitalisation, underscoring fragmented adoption and execution gaps across the sector.
South India emerged as the frontrunner in digital adoption, with a regional DMI of 62.9, outpacing the West (57.4), East (57.1), and North (55.8). Telangana led the state rankings with a DMI of 71.2, driven by Hyderabad’s evolution into a major tech hub, supported by robust digital infrastructure, global enterprise presence, and a vibrant startup ecosystem. Kerala (63.7) and Maharashtra (59.2) followed, bolstered by digital literacy, service sector strength, and IT-industrial ecosystems.
Key Highlights from the Study:
Cybersecurity and Cloud Investment Rising:
76% of MSMEs indicated plans to increase cybersecurity investments in response to escalating cyber threats. Additionally, 72% planned to boost cloud-related spending, reflecting rising confidence in cloud and automation technologies.
Sector-Wise Digital Growth:
The Professional Services sector led in digital transformation investments, followed by Retail, Logistics, Transportation, Media & Entertainment, Manufacturing, Telecom, Agriculture, Financial Services, and Healthcare.
Digital Divide Among MSMEs:
Larger enterprises with turnovers of ₹50–100 crore and above displayed significantly higher digital maturity due to their ability to invest in advanced tools such as automation, customer engagement platforms, and cybersecurity. In contrast, smaller and younger MSMEs continued to adopt digital tools cautiously due to financial limitations and lack of advisory support.
Digital Leadership and Demographics:
MSME founders aged 40–60 years showed the highest digital maturity (DMI: 64.0), challenging the notion that digital savviness is exclusive to younger entrepreneurs (DMI: 57.0).
Women entrepreneurs nearly closed the gender gap in digital adoption (DMI: 57.4 vs men at 57.7), and even led cloud and cybersecurity uptake in niche sectors like IT and Education, albeit from a smaller base.
Despite the positive trends, the report emphasized that digital adoption remains uneven, particularly in critical areas like customer engagement technologies and internal collaboration platforms. While intent was high, execution continued to lag, especially among micro and small enterprises with constrained budgets and limited access to strategic advisory support.
Arvind Nevatia, Chief Enterprise Business Officer, Vodafone Idea Ltd, stated:
“MSMEs in India are clearly moving from digital curiosity to digital commitment and that’s an encouraging shift. The sharp rise in investment intent around cloud, cybersecurity, and automation shows that small businesses increasingly see technology as a growth enabler, not just a utility. Through our ‘Ready for Next’ program, we aim to celebrate and accelerate the remarkable growth journeys of India’s MSMEs, from small towns to global markets, and from manual operations to becoming digital-first enterprises.”
Vi Business reaffirmed its support for India’s MSMEs through its ‘Ready for Next’ initiative, which was certified by Cyber Media Research (CMR) as India’s largest digital advisory platform for MSMEs. Over the past three years, the program has impacted over 2 lakh businesses, spanning 15,000 pin codes and 16 diverse sectors across the country.
As India’s digital economy continues to grow, backed by initiatives like Digital India, BharatNet, and expanding mobile broadband access, Vi Business remains committed to helping MSMEs harness technology for operational efficiency, market expansion, and long-term resilience.
