India’s Micro, Small, and Medium Enterprises (MSMEs), spanning the trade, manufacturing, and service sectors, contribute significantly to both the domestic market and the country’s export landscape. Recognising the evolving digital ecosystem in India and its potential to transform micro, small, and medium enterprises (MSMEs), USAID initiated the SARDI India MSME Tech Policy Fellowship Program. Anchored by LEAD at Krea University (IFMR), the program aimed to conduct policy research at the intersection of digitalization and MSMEs to catalyse sustainable changes in the policy ecosystem.

This report is a synthesis of the three research studies conducted as part of the SARDI Program. Each of the research studies aimed to examine the impact of digital adoption among individuals and enterprises operating within the three target sectors – retail trade and services, handloom, and agriculture.

The study synthesises insights from the research on drivers and barriers of digital adoption and maturity landscape among MSMEs in India across three sectors. It investigates ways in which digital tools are enabling citizens to aspire for improved livelihoods, and facilitating inclusive growth for all citizens. The report also underscores the urgent need for a multi-stakeholder approach to bridge the digital divide and presents actionable recommendations for policymakers, industry leaders, and support organisations.