25-06-2025
67% of Indian MSMEs show digital readiness, but gaps in skills and awareness remain: CMR study
Two out of three Indian micro, small, and medium Enterprises (MSMEs) are digitally equipped with many of them utilising enterprise tools and emerging technologies like artificial intelligence (AI) to enhance operational efficiency, according to a new study by CyberMedia Research (CMR). But while digital adoption is on the rise, challenges related to trust and reliability are slowing the pace of transformation for many businesses.
The pan-India study, which surveyed over 400 MSMEs across sectors like manufacturing, education, retail, and IT services, found that 43 per cent of MSMEs were proficient in tools like Enterprise Resource Planning (ERP) and cloud computing, and 23 per cent already using advanced technologies such as AI.
Despite these gains, many MSMEs remain cautious. The biggest barriers to adoption among growing businesses include a 'lack of clarity on the value and relevance' of digital tools (84 per cent), concerns over data security (81 per cent), and a lack of advanced digital skills (56 per cent).
As digital choices become increasingly complex, a growing number of MSMEs are turning to advisory platforms for support. The study found that 62 per cent of MSMEs actively seek digital advisory guidance, often through MSME-centric online communities, professional forums, and peer networks.
One standout in the digital advisory space is Vi Business' #ReadyForNext (RFN) program, which emerged as India's most widely recognised MSME-focused advisory platform, acknowledged by 57 per cent of surveyed businesses. Among those who used the RFN platform, more than 80 per cent reported digital fluency across both core and advanced tools, pointing to the platform's role in supporting digital upskilling.
Businesses engaging with the RFN initiative reported measurable benefits: 62 per cent experienced improved business connectivity, 37 per cent saw faster decision-making enabled by real-time insights, 33 per cent reported growth in market reach or revenue, and 33 per cent achieved greater operational efficiency. User sentiment was also positive, with 64 per cent of MSMEs expressing overall satisfaction with the platform's services and 65 per cent indicating they would recommend it to their peers.
'India's digital momentum is being reshaped by a growing base of MSMEs adopting technology to drive competitiveness and innovation,' said Prabhu Ram, Vice President, Industry Research Group, CMR, in a statement. 'While the signs of digital maturity are promising, there remains a sizable segment that faces persistent barriers – especially around awareness, skills and cybersecurity,' Ram added.
Ram added that initiatives like #ReadyForNext are increasingly being acknowledged for their role in guiding digital transformation journeys, especially for businesses unsure of how to evaluate or adopt emerging technologies.
