Andrew Bonwick
Vice President of Product Development at Relm Insurance
Madhav Sheth
CEO of Ai+ Smartphone
Stephen Rose
CEO Render Networks


Vi Business, the enterprise arm of Vodafone Idea (Vi), has released the third edition of its report, Ready for Next MSME Growth Insights Study 2025, marking World MSME Day. The study provides an in-depth look at the digital transformation journey of India’s micro, small, and medium enterprises (MSMEs), highlighting increasing digital maturity alongside persistent adoption challenges.
Also Read: Vi Business Unveils Solutions for MSMEs’ Digital Transformation
Digital Maturity on the Rise
According to the report, released on Friday, June 27, India’s national Digital Maturity Index (DMI) has seen a steady increase, moving from 56.6 in 2023 to 58.0 in 2025. However, only 12 percent of MSMEs are fully digitalised, indicating fragmented progress. While awareness and intent are rising, the pace of digital adoption continues to depend heavily on financial capacity and access to advisory support.
Vodafone Idea stated, “As India’s digital economy accelerates backed by Digital India, Bharat Net and mobile broadband use, smaller businesses are exploring digital tools to enhance operational efficiency and expand their market reach.”
Regionally, South India leads the digital shift with a DMI of 62.9. Telangana emerged as the top-performing state with a DMI of 71.2, followed by Kerala (63.7) and Maharashtra (59.2). The transformation of Hyderabad into a technology hub, backed by strong digital infrastructure and a vibrant startup ecosystem, has been a key driver of Telangana’s lead.
Also Read: Vodafone Idea in Talks to Raise USD 2.9 Billion Loan to Strengthen Network
MSME Investment in Cloud and Cybersecurity
The report highlights a significant rise in investment intent across sectors. Professional Services ranked highest in digital transformation budgets, followed by Retail, Logistics, Transportation, Media and Entertainment, Manufacturing, and others. Notably, 72 percent of MSMEs plan to increase cloud spending, and 76 percent have prioritised cybersecurity in response to growing cyber threats.