elevate your business with India’s largest digital maturity study elevate your business with India’s largest digital maturity study

200000 MSMEs have completed the digital assessment

elevate your business with India’s largest digital maturity study

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msmeBook

a sneak-peek of key insights from 1.6 lakh MSMEs

Slide 1

46%

focus on device security to support remote work

Slide 2

80%

digital solutions for growth, HR, and data management

Slide 3

43%

plan to boost digitalization budgets in 2025

Slide 1

46%

higher turnover linked to digital maturity, showing digital focus.

Slide 2

80%

increase in “digital customer engagement” in 2024

Slide 3

43%

key to MSMEs with ₹100 Cr+ turnover that are standing out.

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the undeniable power of MSMEs in India

read more
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Arvind Nevatia

Chief Enterprise Business Officer,
Vodafone Idea Limited

Key Economic Drivers image

Key Economic Drivers

Key Economic Drivers

MSMEs contribute 29% to GDP and drive economic expansion.

digital transactions Image

digital transactions

digital transactions

Around 72% of MSMEs now participate in digital transactions.

employment

employment

employment

Employment over 12 crore people, supporting livelihoods nationwide.

exports

exports

exports

MSMEs contribute 46% to the nation’s total exports annually.

future growth

future growth

future growth

MSMEs are projected to boost their GDP share to 35-40% by 2027.

GVA contribution

GVA contribution

GVA contribution

Around 41% MSMEs contribute to GVA in all manufacturing.

DMI: Digital Maturity Index

what is DMI?

DMI a.k.a Digital Maturity Index is a measure of a business' digital maturity, developed by Vi Business. It is made of 3 key components:

digital
customers
digital
workspace
digital
business
DmiImage DmiImage

the DMI framework

in 3 simple steps

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understanding DMI

DMI a.k.a Digital Maturity Index is a measure of a business' digital maturity, developed.

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sector-wise insights

  • IT-ITeS
  • Financial
  • Transportation
  • Construction
  • Media & Entertainment
  • Agriculture
  • Mining
  • Education
  • Manufacturing
  • Toursim & Hospitality
  • Retail
  • Energy & Utilities
  • Logistics
  • Professional Services
  • Telecom
  • Healthcare & Social Work

industry overview

IT-ITeS MSMEs led the 2024 DMI across all pillars.

Tech focus, regulations, and customer expectations boosted maturity.

IT-ITeS

overall DMI

2023

2024

59
63.3

pillar-wise performance down

current adoption levels down

customer

53.8
60.9

workspace

61.2
64.6

business

60.4
63.3

current adoption levels

52%

device security

50%

workforce collaboration

42%

customer engagement

industry overview

Large firms (50%+) adopt device security, while smaller firms lag behind.

Firms with revenue below ₹10 Cr lack adequate security measures.

financial

overall DMI

2023

2024

52.5
62.3

pillar-wise performance down

current adoption levels down

customer

48.5
59.4

workspace

54.6
64.5

business

53.3
62.0

current adoption levels

51%

cloud

44%

workforce collaboration

42%

device security

industry overview

Ranks 3rd in digital maturity among 16 sectors.

52% use digital tools for customer outreach, 43% for supply chain

Transportation

overall DMI

2023

2024

58.1
61.4

pillar-wise performance down

current adoption levels down

customer

53.5
59.4

workspace

60.8
64.5

business

58.6
60.1

current adoption levels

49%

device security

49%

workforce collaboration

48%

customer engagement

industry overview

Ranks 4th in digital maturity, improving across all pillars.

IoT adoption for fleet management: 42% in large firms, 38% in smaller firms.

Construction

overall DMI

2023

2024

57.8
61.4

pillar-wise performance down

current adoption levels down

customer

52.3
60.9

workspace

60.0
60.0

business

59.2
62.3

current adoption levels

40%

customer engagement

40%

customer service

39%

device security

industry overview

Cloud-based workforce collaboration adoption rises.

41% of firms under ₹50 Cr use cloud solutions.

MediaEntertainment

overall DMI

2023

2024

60.3
59.4

pillar-wise performance down

current adoption levels down

customer

54.5
59.4

workspace

62.5
60.9

business

60.8
59.3

current adoption levels

41%

workforce collaboration

40%

customer engagement

40%

customer service

industry overview

49% adopt data security; 44% implement disaster recovery.

IoT adoption for fleet management: 36% (small firms), 65% (large firms).

Agriculture

overall DMI

2023

2024

56.0
59.5

pillar-wise performance down

current adoption levels down

customer

52.0
58.9

workspace

57.8
60.0

business

57.0
59.8

current adoption levels

47%

device security

42%

cloud

41%

digital security

industry overview

62% of MSMEs will focus on digitalizing operations in 2025.

Only 13% prioritize digital customer engagement.

Mining

overall DMI

2023

2024

58.6
58.5

pillar-wise performance down

current adoption levels down

customer

52.6
55.4

workspace

60.3
65.5

business

59.3
60.8

current adoption levels

58%

device security

43%

customer engagement

43%

customer service

industry overview

Digital adoption is below industry averages across three pillars.

44% use endpoint security, while only 29% secure data access.

Education

overall DMI

2023

2024

54.7
56.1

pillar-wise performance down

current adoption levels down

customer

49.9
54.5

workspace

56.7
56.4

business

55.9
59.3

current adoption levels

37%

device security

34%

customer engagement

34%

digital security

industry overview

49% of MSMEs digitalized operations, with 64% planning further expansion.

IoT fleet management adoption is stable across firm sizes.

Manufacturing

overall DMI

2023

2024

59.9
56.6

pillar-wise performance down

current adoption levels down

customer

53.7
55.0

workspace

62.6
59.5

business

61.3
55.5

current adoption levels

78%

IoT

44%

digital security

42%

device security

industry overview

46% use device security, while only 20% adopt digital security services.

68% of large firms implement endpoint security.

Toursim

overall DMI

2023

2024

54.9
56.2

pillar-wise performance down

current adoption levels down

customer

51.4
54.9

workspace

57.1
57.3

business

55.3
55.0

current adoption levels

46%

device security

39%

workforce collaboration

37%

customer engagement

industry overview

Strong digital growth; 48% use disaster recovery services.

78% of large firms and 41% of smaller firms adopt IoT for payment

Retail

overall DMI

2023

2024

51.7
61.0

pillar-wise performance down

current adoption levels down

customer

47.4
59.9

workspace

54.0
64.5

business

52.4
58.9

current adoption levels

58%

device security

47%

cloud

44%

IoT

industry overview

Digital workspace adoption is highest, with 59% using endpoint security.

Digitalized business operations remain low at 23%.

Energy & Utilities

overall DMI

2023

2024

55.8
55.5

pillar-wise performance down

current adoption levels down

customer

50.8
50.5

workspace

57.9
55.0

business

57.2
60.0

current adoption levels

38%

device security

31%

digital security

26%

connectivity

industry overview

Cloud adoption is the lowest among digital tools at 33%.

60% of MSMEs plan to focus on digitalizing business in FY25.

Logistics

overall DMI

2023

2024

60.1
55.2

pillar-wise performance down

current adoption levels down

customer

54.2
54.5

workspace

62.2
58.0

business

61.9
56.0

current adoption levels

45%

device security

37%

workforce collaboration

35%

customer engagement

industry overview

Ranks lowest in DMI; only 23% engage digitally with customers.

64% plan to increase digital budgets, focusing on workspace and operations.

Professional Services

overall DMI

2023

2024

55.3
40.8

pillar-wise performance down

current adoption levels down

customer

49.4
40.5

workspace

59.0
40.5

business

55.7
42.7

current adoption levels

38%

device security

28%

cloud

25%

customer engagement

industry overview

55% of MSMEs will increase digital budgets in 2025.

71% will focus on digitalizing business operations.

Telecom

overall DMI

2023

2024

56.1
54.8

pillar-wise performance down

current adoption levels down

customer

52.1
53.5

workspace

57.9
58.2

business

57.0
54.1

current adoption levels

54%

device security

39%

workforce collaboration

38%

customer engagement

industry overview

Ranks 11th in DMI; 42% plan to boost digital budgets in 2025.

Device security adoption stands at 45%, digital security at 35%.

Healthcare & Social Work

overall DMI

2023

2024

55.7
55.8

pillar-wise performance down

current adoption levels down

customer

51.3
54.1

workspace

57.8
57.9

business

56.6
57.2

current adoption levels

45%

device security

38%

workforce collaboration

35%

cloud

how to quickly elevate your MSME?

expand market reach

  • checkIconImplement Customer Relationship Management (CRM) systems
  • checkIconDevelop e-commerce solutions
  • checkIconAutomate customer service processes

enhance operational efficiency

  • checkIconAdopt remote work technologies
  • checkIconImplement digital HR platforms
  • checkIconStrengthen cybersecurity measures
  • checkIconLeverage data analytics for workforce insights

transform business digitally

  • checkIconIntegrate supply chain management solutions
  • checkIconImplement Internet of Things (IoT) technologies
  • checkIconEstablish robust disaster recovery services
  • checkIconExplore cloud infrastructure options

hot trends in the MSME space in India 2025

MSMEs Embracing Digital

DMI rose from 56.6 in 2023 to 57.3 in 2024, showing tech adoption growth.

Priority Areas

MSMEs focus on workspace (58.9), operations (58.8), and customer engagement (56.4).

Digital Maturity & Growth

Higher digital maturity increases turnover likelihood by 17% for MSMEs.

MSMEs Embracing Digital

DMI rose from 56.6 in 2023 to 57.3 in 2024, showing tech adoption growth.

Priority Areas

MSMEs focus on workspace (58.9), operations (58.8), and customer engagement (56.4).

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