72% of MSMEs in India plan to increase Cloud spending this year: Vi Business

Time of India

2 days ago

NEW DELHI: 72% of the micro, small and medium enterprises (MSMEs) across sectors plan to increase their
Cloud spending
this year, while 76% are investing in cybersecurity on the back of rising cyber threats, according to the findings of a study conducted by
Vodafone Idea
's enterprise unit.
'
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,' said Arvind Nevatia, chief enterprise business officer, Vodafone Idea, in a statement Friday, on the event of World MSME Day.
Vi Business
found that digital maturity remains uneven across sectors, but reported a sharp rise in investment intent. The professional services sector tops the list and may increase its
digital transformation
budgets by 73% this year, followed by retail (56%) and logistics (54%), while the education sector stands at the bottom of the ladder (32%).
In its third edition of the 'Ready for Next MSME Growth Insights Study 2025', Vi Business said initiatives such as
Digital India
and
BharatNet
, along with an increase in mobile broadband usage, are driving smaller businesses to explore digital tools to enhance operational efficiency and expand their market reach.
'However, the digital adoption remains fragmented,' the company said, adding that with the right financial support and access to the right advisory support, India's small businesses are well-positioned to accelerate their digital journey.
While awareness and intent are rising, the pace of digital adoption is still closely tied to financial capacity. The study found that MSMEs with higher turnover — typically in the ₹50– ₹100 crore-plus range — report significantly greater digital maturity, as they are better positioned to invest in advanced tools across cloud, automation, and customer engagement. In contrast, younger or smaller MSMEs, despite being digitally aware, continue to make measured, phased investments due to budget constraints.
A separate study by
PayNearby
, a branchless banking and digital network, revealed that 33% MSMEs cited improved operational efficiency as a result of digital adoption.
PayNearby said that 71% of MSMEs use smartphones as their primary business device, helping unified payments interface (UPI) emerge as the most preferred transaction method, indicating a deeper, more confident shift towards digital enablement at the last mile.
Smartphone usage remains central to operations, with over 73% of small businesses witnessing increased income or improved operational efficiency as a result of adopting digital tools. Daily internet usage continues to rise, with 69% respondents consuming between 2GB to 5GB of data, largely supported by mobile hotspots, with 86% spending around ₹500–₹1,000 per month on internet usage, according to PayNearby, which surveyed 10,000 individuals and MSMEs in retail-focused segments such as kirana stores, mobile recharge outlets, medical shops, customer service points, and travel agencies.
'The MSME sector is the backbone of Bharat's economy, and the rapid adoption of digital tools such as smartphones, UPI, Aadhaar-enabled banking, and emerging AI workflows is proof that this segment is embracing modernisation,' said Anand Kumar Bajaj, Founder, MD & CEO, PayNearby.