On MSME Day, Vi Business, the enterprise arm of Vodafone Idea, unveiled its third edition of the ‘Ready for Next MSME Growth Insight Study 2025’. This study highlights the evolving landscape of digital maturity among Micro, Small, and Medium Enterprises (MSMEs) in India. According to the study, 76% of MSMEs are planning to increase their investments in cybersecurity. This is a significant shift as businesses recognise the importance of protecting their digital assets.
Over the past three years, more than 200,000 MSMEs have used Vi Business’s digital maturity assessment platform. This platform helps businesses evaluate their digital capabilities and readiness to adapt to a rapidly changing environment. The Digital Maturity Index (DMI) of India has shown an increase from 56.6 in 2023 to 58.0 in 2025, reflecting the growing acceptance of digital tools.
The study reveals that cloud services and cybersecurity are gaining importance, with over 70% of MSMEs intending to boost their digital investments in these areas. Telangana leads the DMI rankings with a score of 71.2, followed by Kerala and Maharashtra with scores of 63 and 59, respectively. The financial services sector shows the highest digital maturity, with a DMI score of 66, followed by transportation and retail, both at 62.
The ‘Ready for Next’ initiative aims to celebrate the remarkable growth journeys of MSMEs, from small towns to global markets. Arvind Nevatia, Chief Enterprise Business Officer of Vodafone Idea, remarked that MSMEs are shifting from digital curiosity to digital commitment, which is a positive trend. There is a clear intention to invest in technologies as part of their growth strategy.
In terms of regional digital leadership, South India stands out with a DMI of 62.9. This region is a leader in digital transformation, followed by the West (57.4), East (57.1), and North (55.8). The study notes that Telangana, with its robust startup ecosystem and government support, has significantly advanced in digital adoption.
Despite the overall increase in digital maturity, the study also highlights that only 12% of MSMEs have fully digitised their operations. This indicates that while many businesses are eager to invest in digital technologies, the pace of adoption remains uneven. Small and micro businesses often face financial constraints that hinder their ability to invest in advanced tools.
The study also highlights a notable increase in female entrepreneurs. Women entrepreneurs are closing the gap in digital maturity scores, showing significant progress in sectors like education and IT. Entrepreneurs aged 40 to 60 are leading in digital adoption, indicating that experience plays a critical role in navigating the digital landscape.
However, the study also points out that digital adoption is still inconsistent across different sectors. There are considerable gaps in customer engagement technology and internal collaboration platforms. While investment intentions are high, the implementation pace is slow, particularly in micro and small businesses due to financial capabilities.
The ‘Ready for Next’ programme, certified by Cyber Media Research (CMR) as the largest digital advisory platform for MSMEs in India, has facilitated partnerships with over 200,000 MSMEs across 15,000 pin codes and 16 sectors within the last three years. This extensive reach underscores the importance of digital readiness in today’s business environment.
The insights from this study are crucial as they not only reflect the current state of MSMEs in India but also provide a roadmap for future growth. By embracing digital tools and strategies, MSMEs can enhance productivity, engagement, and competitiveness in an increasingly digital world.
In conclusion, Vi Business’s ‘Ready for Next’ initiative is a significant step towards fostering a digitally mature MSME sector in India. As businesses continue to adopt digital solutions, the focus on cybersecurity and cloud services will be vital for sustainable growth and resilience in the face of future challenges.
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