India SME Forum Report Reveals 53.8% MSMEs Now Digitalised; WhatsApp & Ministry of MSME Launch AI-Powered Chatbot under Digishaastra Initiative

New Delhi, December 2, 2025:
The India SME Forum successfully unveiled its latest report on “The State of Digitalisation in Indian MSMEs - A Study on the Evolving Digital Landscape of MSMEs in India,” at the event by Ms. Mercy Epao, JS - SME, Ministry of MSME; Shri Ateesh Kumar Singh, JS-AFI, Ministry of MSME; and Shri Kartikey Sinha, Director, Planning & Marketing, NSIC, held earlier today in New Delhi. The occasion also marked a significant milestone for the Digishaastra Initiative, launched in December 2024 by the India SME Forum in partnership with the Ministry of MSME, which has already achieved large-scale digital capacity building for entrepreneurs across the country.

The report launched today draws insights from 7,835 MSMEs across India, making it one of the most comprehensive primary studies on digital adoption within the sector. It spans diverse enterprise sizes, geographic regions, and industry segments and is backed by a rigorous research methodology that prioritises data accuracy, linguistic inclusivity, and authentic representation of India’s MSME ecosystem.

The findings highlight a rapid acceleration in digital transformation across the MSME landscape. According to the study, 53.8% of MSMEs have adopted at least one digital tool, while 46.2% continue to operate fully offline, revealing a substantial opportunity for future digital enablement. Among the enterprises that have digitised, 41.4% reported a sales increase of 21–30%, while 69% experienced at least a 10% rise in customer base, demonstrating the tangible impact of digital technologies on business growth.

Email emerged as the most widely adopted digital channel, used by 95.4% of digitised firms, followed by CRM platforms at 71.8% and e-commerce tools at 70.4%. The report also notes the rising adoption of visual-first engagement platforms to reach younger customer segments. Micro enterprises employing 1–9 people accounted for 59.1% of respondents and were found to be leading digital adoption trends, while over 91% of MSME owners surveyed were between 45 and 54 years of age, indicating strong digital willingness among mid-career business leaders.

Despite this momentum, the report highlights important challenges that continue to impede progress. A significant 52.6% of MSMEs struggle to identify the right digital tools for their needs, underscoring the requirement for structured handholding, training, and advisory support. Additionally, 97.3% of respondents remain unaware of government schemes or incentives designed to support digitalisation, pointing to a critical gap in information access and policy communication.

Speaking on the findings, the India SME Forum emphasised that digitalisation has become a cornerstone of MSME growth, resilience, competitiveness, and employment generation. Enterprises across the country are increasingly leveraging digital tools to enhance operational efficiency, optimise logistics, reduce transactional costs, and expand access to both domestic and global markets. At the same time, the report highlights that gaps in digital skills, infrastructure, cybersecurity preparedness, and financing continue to limit the widespread adoption of advanced digital solutions, calling for coordinated support from all ecosystem stakeholders.

Recognising the need for a dedicated platform to support MSMEs, the Digishaastra initiative was launched with the goal of digitally empowering one million enterprises. Within its first year, the initiative has far exceeded expectations, successfully training over 4,76,000 entrepreneurs across India. While this represents a remarkable achievement, there remains significant scope for expansion. Continued efforts are essential to address existing gaps, extend the programme’s reach, and create greater impact. The initiative has already equipped MSMEs with essential digital capabilities, enabling sustainable business growth, improved operational efficiency, and enhanced employment generation.

Ms. Mercy Epao, JS-SME, Ministry of MSME stated,“Heartiest congratulations to the India SME Forum for completing one year of the Digishaastra initiative. Today’s gathering truly reflects the remarkable energy and determination of India’s MSME community. The inspiring stories we heard highlight the transformative impact of innovation and digital adoption. Our Ministry is committed to further enabling this journey through initiatives such as Digital MSME, TEAM and various digital enablement programs, ensuring that every MSME, across our 7.2 crore ecosystem has the tools to grow, compete globally and contribute to India’s economic progress. I urge more entrepreneurs to embrace digital platforms and become part of this movement toward a stronger and future-ready MSME sector.”

Shri Ateesh Singh, JS-AFI, Ministry of MSME said,“The question today is no longer why MSMEs should adopt digital tools, but how to make that journey simple, accessible and meaningful. As we build the next generation of business infrastructure from GST 2.0 to AI-driven services and voice-based interfaces, we must work together to ensure technology truly empowers entrepreneurs on the ground. With reforms in compliance, arbitration, and data protection underway, and with AI opening new possibilities in dispute resolution, marketing and digital onboarding, this is our opportunity to create a stronger, smarter, and more inclusive MSME ecosystem. The future will be defined by how quickly we collaborate, innovate, and turn technology into real impact for India’s businesses.”

Shri Arun Srinivas, Managing Director & Country Head, Meta (India), shared his views and said, “Millions of micro and small enterprises across India are now going digital first and we are witnessing how technology can transform their growth. Through our partnership with the Ministry of MSME and the India SME Forum, we have empowered over 476,000 entrepreneurs with training and digital tools, proving that when guidance meets innovation, MSMEs can scale their businesses and even access global markets. With the launch of the AI-powered MSME chatbot, we are unlocking the next phase of digital enablement, making support accessible, real-time, and impactful, and ensuring India’s MSMEs are stronger, smarter, and ready for the future.”

Ms. Victoria Grand, Vice President, Global Business Operations, Policy and External Affairs, WhatsApp Inc., attended the event as a special guest and highlighted the growing need for digitally equipped tools to support MSMEs. She formally announced that WhatsApp, in collaboration with the Ministry of MSME, will be developing an AI-powered chatbot to help Indian MSMEs become digitally enabled and said, “We believe that small businesses, with the right digital tools, can supercharge India’s digital economy and are focused on building innovative experiences that can turbocharge growth opportunities for them through WhatsApp. We need the right ecosystem and partnerships to strengthen the MSME economy, and our collaboration with the Ministry of MSME and India SME Forum reflects our commitment to making open, transparent, and inclusive AI tools accessible to every entrepreneur in India, empowering them to grow, compete, and succeed in the digital age.” 

This announcement was followed by the signing of a Letter of Intent (LOI) between the Ministry of MSME, WhatsApp, NSIC and the India SME Forum, formalising their partnership to advance digital capacity building for MSMEs.

The AI-powered WhatsApp chatbot will be designed to digitally enable and guide MSMEs across India, providing personalised, real-time support to access critical resources, including government schemes, compliance guidance, credit, skilling, and digital onboarding. This initiative strengthens digital adoption and helps MSMEs navigate the digital economy efficiently, in alignment with the Government of India’s Digital India vision.