Almost 60% of small and medium-sized enterprises plan to digitalize their business processes by 2025: Vi | News

Nearly 60 percent of small and medium-sized enterprises plan to digitize their business processes, and 43 percent plan to increase their digitalization budget by 2025, according to a survey conducted by Vi Business, the corporate arm of Vi (Vodafone Idea).

Medium, small and micro enterprises (SMEs) form the backbone of the Indian economy and currently account for almost 30 per cent, the report said. country’s GDP.

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There are several studies suggesting that by 2027, small and medium-sized enterprises will increase their contribution to GDP to 35–40 percent.

Therefore, SMEs need to embrace digital transformation to unleash their growth potential and play a key role in transforming India into a Viksit Bharat (developed economy) by 2047, he said.

The Vi Business ReadyForNext MSME Growth Insights Study used data from 1.6 lakh respondents across 16 industries.

“In fiscal year 2025, SMEs want to prioritize business process digitization (59 percent) over workspace optimization (29 percent) and customer engagement (12 percent), indicating the need for future-oriented business operations and growth. More than 50 percent of SMEs focused on business digitization plan to increase their budget,” the report reads.

It also found that “43 percent of small and medium-sized enterprises plan to increase their overall digitalization budget by 2025. Sectors with a lower digital maturity index (DMI) are particularly likely to increase their investments, reflecting the growing commitment to digital transformation.”

IT-ITES (information technology and IT-enabled services), financial services and transport are the three main sectors that have emerged as the most digitally mature.

“Digitization has a direct positive correlation with turnover. Moreover, as the size of the company increases, the variation in the level of digital maturity narrows, indicating that medium and large companies have adopted digitalization, while micro and small companies have a dispersed digital adoption,” we read.

During the Covid-19 pandemic, while small and medium-sized enterprises prioritized the digitalization of their workplaces, in 2024 the focus was on digital communication with customers, she said.

“With over 6.3 billion businesses, India’s small and medium enterprise sector is the cornerstone of our country’s economic strength. These enterprises are not only engines of growth, contributing around 30 per cent to GDP, but are also significant job creators, employing a staggering 11 billion workers,” said Arvind Nevatia, Chief Enterprise Officer, Vodafone Idea Limited.