Micro, Small and Medium Enterprises (MSMEs) play a significant role in India’s economic development by contributing to employment generation, industrial output, exports, and regional development. In the digital era, technological innovation has become a key driver of competitiveness and productivity for small businesses. Digital transformation refers to the integration of digital technologies such as cloud computing, data analytics, digital payments, and e-commerce platforms into business operations to improve efficiency and market reach. According to the Economic Survey of India 2025–26, the MSME sector contributes about 31.1% to India’s GDP, 35.4% of manufacturing output, and nearly 48.58% of the country’s exports. This research paper examines the role of digital transformation in strengthening MSMEs in India by improving operational efficiency, enhancing financial inclusion, and enabling global market access. The paper also discusses government initiatives, major challenges faced by MSMEs in adopting digital technologies, and the future prospects of digital transformation for sustainable economic development.
Dangi et al. (Tue,) studied this question.