As India’s digital economy expands, a new report released on World MSME Day indicates that Micro, Small and Medium Enterprises (MSMEs) are increasingly prioritizing cybersecurity and cloud investments to enhance operational efficiency. The ‘Ready for Next MSME Growth Insights Study 2025’, published by Vi Business, highlights a steady uptick in the country’s Digital Maturity Index (DMI) — rising from 56.6 in 2023 to 58.0 in 2025.
The study shows that 76% of MSMEs plan to ramp up investment in cybersecurity, while over 72% intend to boost cloud spending. However, the report also underscores that only 12% of MSMEs have achieved full digital maturity, indicating that despite high awareness, the adoption of digital tools remains uneven.
South Indian states lead in digital transformation, with Telangana topping the DMI chart at 71.2, followed by Kerala (63.7) and Maharashtra (59.2). Sector-wise, Financial Services has the highest digital maturity, followed by Transportation and Retail.
Participation in Vi Business’s ‘Ready for Next’ digital maturity assessment platform has grown significantly, with over 2 lakh MSMEs across 15,000 pin codes engaging in the program over the last three years. The platform has been certified by Cyber Media Research as the country’s largest digital advisory initiative for MSMEs.
The study highlights a shift from “digital curiosity to digital commitment,” said Arvind Nevatia, Chief Enterprise Business Officer at Vodafone Idea Ltd. He noted that MSMEs are now seeing technology as a “growth enabler” rather than a cost or utility.
Interestingly, women entrepreneurs are narrowing the digital gap, showing strong participation in cloud and security adoption in sectors like IT and education. Meanwhile, entrepreneurs aged 40–60 reported the highest digital maturity (DMI: 64.0), debunking the perception that digital leadership is confined to younger founders.
Despite these positive trends, the study identifies financial capacity as a key barrier to deeper digital adoption. Larger MSMEs, particularly those with turnovers above ₹50 crore, report significantly greater maturity than smaller or newer businesses, many of whom continue to adopt digital tools in a phased manner.
The findings reflect both optimism and ongoing challenges in India’s path toward digitalizing its MSME backbone. While intent is clearly rising, a combination of financial support and digital advisory will be crucial to translating this momentum into widespread transformation.