New Delhi, Jun 28 (KNN) In a significant development for India's micro, small, and medium enterprises (MSMEs), a new study by Vi Business, the enterprise arm of Vodafone Idea, has revealed a growing trend towards digital transformation in the sector.

The findings, released on World MSME Day, provide a comprehensive overview of the digital landscape among Indian MSMEs.

According to the study, 43 per cent of MSMEs plan to increase their digitalisation budget by 2025, while 28 per cent aim to maintain current levels.

Only 21 per cent of the surveyed businesses anticipate a decrease in their digital spending.

The research introduced a Digital Maturity Index (DMI), which highlighted IT/ITeS, financial services, and transportation as the most digitally advanced sectors.

While retail and construction sectors are making rapid strides, the telecom manufacturing sector lags behind with a DMI of 54.8.

The study also found that larger firms demonstrate more consistent digital maturity, whereas micro and small enterprises show varied adoption rates.

Despite facing challenges such as knowledge gaps and financial constraints, MSMEs are increasingly utilising technologies like cloud computing, Internet of Things (IoT), and advanced workspace tools.

Notably, 40 per cent of MSMEs in IT & ITeS, retail, and construction have already adopted IoT solutions.

Looking ahead to FY2025, the majority of MSMEs (59 per cent) are prioritizing the digitalisation of business processes, while 29 per cent focus on workspace digitalisation and 12 per cent on customer engagement.

This shift in focus underscores the sector's commitment to future-proofing operations and driving growth.

In response to these findings, Vi Business has launched an enhanced Digital Assessment Tool available in both English and Hindi.

Arvind Nevatia, Chief Enterprise Business Officer, Vodafone Idea, emphasised the significance of the study, noting that it highlights both the progress and challenges in the digital transformation journey of India's small businesses.

This in-depth analysis offers valuable insights into the evolving digital landscape of India's MSME sector, providing a roadmap for future growth and development in this crucial segment of the economy.

(KNN Bureau)