Vi Business Unveils MSME Digital Report, Telangana Leads

Vi Business, a Vodafone Idea’s enterprise arm, released the third edition of its ‘Ready for Next MSME Growth Insights Study 2025’, celebrating the digital progress of India’s small- and mid-sized businesses, on World MSME Day.
The report shows that the MSMEs in India are gradually shifting from digital curiosity to digital commitment, according to Arvind Nevatia, Chief Enterprise Business Officer, Vi. A nationwide Digital Maturity Index (DMI) increased to 58.0 in 2025 compared to 56.6 in 2023, showing an increasing desire to change. It is important to note that 76 percent of MSMEs are enhancing investment in cybersecurity, and 72 percent are raising spending in the cloud.
Telangana is first in DMI, recording 71.2, followed by Kerala and Maharashtra. Financial services, transportation, and retail were the most digitally developed sectors. Women entrepreneurs are gaining ground, particularly in cloud and cybersecurity integration in businesses such as IT and education. Meanwhile, the drivers of the shift are MSME owners aged 40-60 who are breaking the stereotype that digital leadership is a preserve of the young.
However, the journey isn’t without hurdles, as only 12 percent of MSMEs are fully digitalized. The study highlights that financial capacity remains an important obstacle, since larger companies that have more funds at their disposal quickly switch to more advanced tools, whereas smaller companies are more prudent. Over 2 lakh MSMEs across 16 sectors and 15,000 pin codes have participated in Vi Business’ ‘Ready for Next’ platform over the last three years, making it India’s largest digital advisory for MSMEs.
Image Source: Vi