According to ‘Vi Business ReadyForNext MSME Growth Insights Study (Volume 2.0 2024)’ by Vi Business, enterprise arm of Vodafone Idea Limited (Vi), 43 per cent of micro, small and medium enterprises (MSMEs) in India plan to increase their overall digitalisation budget by 2025. While 28 per cent aim to retain their budgetary allocation, and only 21 per cent may decrease in 2025.
The study stated that MSMEs are the backbone of India’s economy, currently contributing 30 per cent to the country’s gross domestic product (GDP). There are several studies that suggest MSMEs will boost their GDP contribution to 35-40 per cent by 2027. Hence, it is crucial for MSMEs to adopt digital transformation to unleash their growth potential and play a pivotal role in making India a Viksit Bharat (a developed economy) by 2047. Recognising the need for digital adoption, the government has introduced several key initiatives and policies such as Make in India, Aatmanirbhar Bharat, Udyam Portal, Udyami Mitra and others to enhance productivity, streamline operations, and boost the overall competitiveness of the MSME sector.
The study delves into the digital maturity of MSMEs across 16 sectors namely, information technology (IT) and IT enabled services (ITes), financial services, transportation, construction, retail, agriculture, media and entertainment, manufacturing, and others and how they are leveraging digitisation and technology.
In addition, Vi Business has launched a digital assessment tool, as an extension of their MSME program, #ReadyForNext. The assessment focuses on three key pillars including digital customer, digital workspace, and digital business. Based on responses, the tool provides user specific report stating the digital maturity scores of businesses, benchmarked against the industry with relevant digital product recommendations.
Commenting on the study, Arvind Nevatia, chief enterprise business officer, Vi, said, “At Vi Business, we recognise the crucial role that MSMEs play in India’s growth agenda and their significant contribution to the economy. Our extensive MSME study highlights the encouraging progress being made by small businesses in India as well as the challenges that remain in their digital transformation. Moreover, the findings of the study, arguably India’s largest MSME based digital assessment study, provide effective and useful insights on the way forward for such organisations. Vi Business is a steadfast partner to drive forward India’s digital economy and help MSMEs accelerate their growth potential.”
