India’s micro, small and medium enterprise (MSME) sector is entering a new phase of technology-led expansion, with artificial intelligence (AI), cybersecurity and digital workplace solutions emerging as critical productivity drivers, according to the Vi Business MSME Growth Insights Study 2026. Based on insights from more than 2.5 lakh MSMEs across 16 sectors, the study found that 57 per cent of enterprises now view AI as essential for scaling business, while 25 per cent have already integrated AI into their operations.
The report showed India’s Digital Maturity Index (DMI) rising to 60.8 from 58.0 in 2025, reflecting broader adoption of digital technologies across businesses. Nearly 46.3 per cent of MSMEs have deployed cybersecurity solutions, while women-led enterprises achieved a higher DMI of 61.6, outperforming male-led firms. Financial Services emerged as the country’s most digitally mature sector, ahead of IT &ITeS, Transportation, Energy & Utilities and Tourism & Hospitality. Telangana and Karnataka led the state rankings, with Andhra Pradesh entering the top 10 for the first time. From an economic perspective, the findings suggest that MSMEs are moving beyond basic digitisation towards technology-enabled productivity and financial resilience. Vi Business has reinforced this transition by introducing Financial Readiness as the fourth pillar of its ReadyForNext assessment, complementing Digital Customer, Digital Workplace and Digital Operations. The report also noted that AI, SaaS-based collaboration platforms and cybersecurity are expected to shape the next wave of enterprise competitiveness, while around one-fifth of MSMEs remain offline and many still lack dedicated websites, highlighting untapped growth potential.
Commenting on the report, M P Sunil Kumar, Chief Enterprise Business Officer, Vodafone Idea Limited, said investments in AI, cloud, cybersecurity and enterprise technologies are helping Indian MSMEs become more resilient and globally competitive, while the new Financial Readiness framework will support sustainable growth and improved access to funding. For Shillong and the wider Meghalaya economy, the study underlines significant opportunities for MSMEs operating in tourism, hospitality, retail, education and professional services. Although no eastern state features among India’s top 10 digitally mature MSME ecosystems, growing adoption of AI, cloud platforms, digital payments and cybersecurity could enhance business productivity and market access. The findings also point to opportunities for telecom operators, financial institutions and technology providers to accelerate digital adoption and strengthen the region’s emerging entrepreneurial ecosystem.