New Delhi, Nearly 60 per cent of MSMEs plan to digitize their business processes and 43 per cent plan to increase their digitization budget by 2025, according to a study by Vi Business, the business arm of Vi (Vodafone Idea).
Medium, small and micro enterprises (MSMEs) are the backbone of India's economy and currently contribute nearly 30 per cent to the country's GDP, the report said.
There are several studies that suggest that MSMEs will increase their contribution to GDP by 35 to 40 percent by 2027.
Therefore, MSMEs must embrace digital transformation to unlock their growth potential and play a pivotal role in making India a Viksit Bharat (a developed economy) by 2047, he said.
The 'Vi Business ReadyForNext MSME Growth Insights Study' obtained insights from 1.6 lakh respondents across 16 industries.
"In fiscal 2025, MSMEs will look to prioritize digitization of business processes (59 percent) over workspace optimization (29 percent) and customer engagement (12 percent), indicating the need of future-proof business growth and operations. More than 50 percent "100% of MSMEs focusing on business digitalization plan to increase their budget," the report states.
It also said that "43 percent of MSMEs plan to increase their overall digitalization budget by 2025. Sectors with a lower digital maturity index (DMI) are particularly inclined to increase their investments, reflecting a growing commitment towards digital transformation".
IT-ITES (information technology and IT-based services), financial services and transportation were the three sectors that emerged as the most digitally mature.
"Digitization has a direct positive correlation with turnover. Furthermore, as company size increases, the variation in the level of digital maturity reduces, indicating that medium and large companies have adopted digitalization and there are dispersed digital adoption among micro and small businesses," he said.
During COVID-19, while MSMEs prioritized digitizing their workspaces, in 2024 the focus was on engaging with their customers digitally.
"India's vibrant MSME sector, comprising over 6.3 crore businesses, is a cornerstone of our nation's economic strength. These businesses are not just engines of growth, contributing approximately 30 per cent of GDP, but also vital job creators, employing a staggering 11 million people,” said Arvind Nevatia, Corporate Business Director, Vodafone Idea Limited.
Medium, small and micro enterprises (MSMEs) are the backbone of India's economy and currently contribute nearly 30 per cent to the country's GDP, the report said.
There are several studies that suggest that MSMEs will increase their contribution to GDP by 35 to 40 percent by 2027.
Therefore, MSMEs must embrace digital transformation to unlock their growth potential and play a pivotal role in making India a Viksit Bharat (a developed economy) by 2047, he said.
The 'Vi Business ReadyForNext MSME Growth Insights Study' obtained insights from 1.6 lakh respondents across 16 industries.
"In fiscal 2025, MSMEs will look to prioritize digitization of business processes (59 percent) over workspace optimization (29 percent) and customer engagement (12 percent), indicating the need of future-proof business growth and operations. More than 50 percent "100% of MSMEs focusing on business digitalization plan to increase their budget," the report states.
It also said that "43 percent of MSMEs plan to increase their overall digitalization budget by 2025. Sectors with a lower digital maturity index (DMI) are particularly inclined to increase their investments, reflecting a growing commitment towards digital transformation".
IT-ITES (information technology and IT-based services), financial services and transportation were the three sectors that emerged as the most digitally mature.
"Digitization has a direct positive correlation with turnover. Furthermore, as company size increases, the variation in the level of digital maturity reduces, indicating that medium and large companies have adopted digitalization and there are dispersed digital adoption among micro and small businesses," he said.
During COVID-19, while MSMEs prioritized digitizing their workspaces, in 2024 the focus was on engaging with their customers digitally.
"India's vibrant MSME sector, comprising over 6.3 crore businesses, is a cornerstone of our nation's economic strength. These businesses are not just engines of growth, contributing approximately 30 per cent of GDP, but also vital job creators, employing a staggering 11 million people,” said Arvind Nevatia, Corporate Business Director, Vodafone Idea Limited.
