SME Digital World

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Breaking Barriers: Why Only ~15% of Indian MSMEs Adopt AI
Breaking Barriers: Why Only ~15% of Indian MSMEs Adopt AI
India’s Micro, Small, and Medium Enterprises (MSMEs) are often called the backbone of the economy. They account for nearly 30% of the country’s GDP and employ over 110 million people. Yet, despite their crucial role, only about 15% of Indian MSMEs have adopted Artificial Intelligence (AI) in their operations.
In a world rapidly being transformed by technology, why is AI adoption among MSMEs still so low? Let’s explore the key reasons and what can be done to overcome them.
1. Lack of Awareness and Understanding
Many MSME owners are either unaware of AI or have a limited understanding of how it can benefit their business. AI is often seen as a complex or “big company” technology, rather than something that small businesses can use. As a result, decision-makers may not even consider it an option.
Solution: Industry bodies, tech providers, and the government need to create simplified education campaigns and success stories focused on MSME-friendly AI use cases—like automating invoicing, improving customer service, or forecasting demand.
2. High Perceived Costs
AI tools are often seen as expensive. For businesses running on tight budgets, investing in AI can feel risky—especially if the return on investment (ROI) isn’t clear upfront.
Solution: Affordable, subscription-based AI solutions tailored for MSMEs are emerging. Encouraging trials, offering tax incentives, and bundling AI with existing software can help break the cost barrier.
3. Shortage of Skilled Talent
AI adoption isn’t just about buying a tool—businesses need people who can operate it. Most MSMEs struggle to find or afford talent with the right technical skills.
Solution: Platforms offering “AI-as-a-service” can reduce the need for in-house expertise. At the same time, short-term upskilling programs for MSME employees can bridge the talent gap.
4. Lack of Digital Infrastructure
AI depends on clean, accessible digital data and reliable internet access. Many MSMEs, especially in Tier-2 and Tier-3 cities, still rely on paper-based systems or outdated software.
Solution: Before pushing AI adoption, we need to support MSMEs in their basic digital transformation journey—getting online, using ERPs or CRMs, and building a data culture.
5. Fear of Change
There’s also an emotional barrier. Many MSME owners have run their businesses in a certain way for decades. AI sounds like a big shift—and with that comes fear of disruption or job loss.
Solution: Change management is critical. Showcasing how AI can assist—not replace—existing teams can ease fears. In many cases, AI helps small teams do more with less, improving job satisfaction.
The Way Forward
To unlock the full potential of India’s MSME sector, AI adoption must go mainstream. The 15% currently using AI are already seeing improvements in efficiency, customer experience, and revenue. But to scale this success, we need a coordinated push involving:
Accessible technology
Awareness campaigns
Government and financial incentives
Public-private partnerships for skilling
With the right support, India’s MSMEs can move from being digital followers to tech-powered leaders fueling inclusive economic growth across the country.
August 6, 2025
Best ERP Software for SMEs in India (2025 Edition)
Best ERP Software for SMEs in India (2025 Edition)

In today’s fast-evolving business landscape, small and medium-sized enterprises (SMEs) in India are increasingly recognizing the importance of digital tools for growth. One of the most critical tools among them is ERP software – a solution that centralizes operations, automates processes, and offers real-time visibility across departments.
But with dozens of ERP solutions in the market, choosing the right one can be overwhelming. To make your decision easier, we’ve curated a list of the best ERP software for Indian SMEs in 2025, starting with a powerful homegrown solution: Vision ERP.
Why SMEs Need ERP Software in 2025

ERP (Enterprise Resource Planning) software is no longer just for large enterprises. Today’s SMEs need to manage increasing complexity from inventory and compliance to multi-location operations and customer expectations. Here’s how ERP helps:
Real-time business insights
Automation of repetitive tasks
Smarter inventory control
Scalable infrastructure for growth
Better compliance and audit readiness
With cloud-based and AI-powered ERP systems becoming more affordable, SMEs now have access to enterprise-level tools at SME-level costs.
Vision ERP by Proteus
Vision ERP is a robust, AI-powered ERP solution designed specifically for Indian SMEs. Built by Proteus Technologies, this cloud-native software caters to diverse industries like pharmaceuticals, food processing, engineering, FMCG, and textiles.
Standout Features:
AI-driven automation and predictive insights
Fast implementation (go live in days)
User-friendly, mobile-accessible interface
Industry-specific modules for faster onboarding
Real-time dashboards and reporting

Zoho One (Zoho ERP)
Zoho One offers a comprehensive suite of cloud applications that functions as an ERP for startups and service-driven SMEs. It’s ideal for teams looking for quick deployment and easy usability.
Key Benefits:
Budget-friendly
Cloud-based and mobile-ready
Strong CRM, HR, and finance integration

TallyPrime with Cloud Access
Tally has long been the go-to software for accounting in India. With the advent of Tally on Cloud, it has become a basic ERP alternative for SMEs focusing on inventory and financial management.
Why Consider It:
Easy transition for existing Tally users
Ideal for basic finance and stock control
Familiar and simple interface

SAP Business One
For SMEs that are scaling rapidly and require robust features, SAP Business One is a powerful ERP platform offering deep functionality and strong global support.
Strengths:
Advanced reporting and analytics
Strong integration ecosystem
Best suited for manufacturing and distribution businesses

ERPNext
ERPNext is an open-source ERP developed in India, ideal for companies that prefer flexibility and in-house customization.
Notable Features:
Modular structure with apps for CRM, HR, and Projects
Suitable for manufacturing, retail, and education sectors
Active open-source community for support
The best ERP solution for your business depends on your industry, budget, and how fast you want to scale. While global tools like SAP and Zoho offer depth and brand recognition, Indian solutions like Vision ERP stand out for their speed of implementation, localized features, and industry-specific flexibility.
As we move deeper into 2025, SMEs that adopt smart ERP systems will have a clear edge in efficiency, decision-making, and growth readiness.
June 20, 2025
SBI Projects Robust Loan Growth for FY25, Driven by SME and Corporate Lending, Expanded Deposits, and Strategic Network Expansion

SBI Projects Robust Loan Growth for FY25, Driven by SME and Corporate Lending, Expanded Deposits, and Strategic Network Expansion

The State Bank of India (SBI) is set to achieve above-average loan growth of 14-16% year-on-year (Y-o-Y) for FY25, significantly higher than the banking industry’s projected 13% growth. This surge will be largely fueled by the SME, agriculture, and corporate sectors, where SBI has a robust corporate credit pipeline estimated to grow from Rs 4 trillion to Rs 6 trillion.
In addition, SBI’s Xpress Credit, a real-time personal loan system for salaried customers, has regained momentum with high turnover rates and an average loan tenure of 14 months, further supporting growth. Complementing the credit push, SBI is focusing on deposit mobilization to sustain lending capacity, expecting deposit growth to surpass 10% Y-o-Y through expanded customer outreach and branch networks.
Recent reports by Nuvama Institutional Equities and Motilal Oswal indicate that SBI’s strategy will be bolstered by re-engaging business accounts, reducing reliance on government accounts, and prioritizing current accounts (CA) and savings accounts (SA). The bank recently reported a strong 28% Y-o-Y increase in Q2 net profit, primarily driven by non-interest income gains, though NIMs dipped 8 basis points due to rising funding costs. To stabilize margins, SBI plans to adjust MCLR loan rates, which represent 42% of its lending, cushioning NIMs at 3.3% moving forward.
This loan growth strategy positions SBI as a leader in SME and corporate financing while expanding its branch network to attract a broader customer base.

November 27, 2024
Subam Papers Debuts on BSE SME with 6.6% Discount Amid Ongoing Expansion and Sustainability Focus

Subam Papers Debuts on BSE SME with 6.6% Discount Amid Ongoing Expansion and Sustainability Focus

Subam Papers made its stock market debut on the BSE SME platform with a 6.6% discount, listing at ₹142 compared to the issue price of ₹152. This debut comes as the company continues its expansion in the manufacturing of Kraft Paper and Duplex Board. The initial stock performance indicates market caution, despite the company’s positive growth trajectory.
Subam Papers, founded in 2004, started with paper cones and later expanded to Kraft paper and Duplex board production. Notably, the company emphasizes sustainability, using wastepaper as the primary raw material, avoiding wood pulp, and operating on renewable energy sources like wind and solar power. With two windmills totaling 1.7 MW and a 14 MW solar plant, Subam Papers significantly reduces its environmental footprint, aligning its operations with eco-friendly practices.
In FY 2023-24, Subam Papers had an installed capacity of 300 metric tons per day (MTPD) for Kraft paper and 140 MTPD for Duplex board, reaching 93,081 tons and 43,963 tons in utilization, respectively. The company is currently expanding its capacity and aims to exceed 1,000 MTPD by Q4 FY 2024-25.
For the fiscal year ending March 2024, Subam Papers reported total revenues of ₹497 crore and a net profit of ₹33.44 crore. The funds raised from the public offering will be directed toward investment in its subsidiary, financing capital expenditures, and covering general corporate purposes.

October 8, 2024
Watch out for cybersecurity Threats in India
Keep an eye out for cybersecurity threats
India’s digital revolution is booming, but with growth comes a surge of cyber threats targeting everything from personal data to critical infrastructure. Cybercriminals are becoming increasingly sophisticated, making cybersecurity a pressing concern. Let’s explore the major cybersecurity threats in India and how we can combat them.

Cybercrime is on the rise

India is among the top targets for cyberattacks worldwide. With millions of new users online, cybercriminals exploit the rapid shift to digital platforms. From ransomware to phishing, these threats are wreaking havoc across various sectors.

Some of the major security threats are

Phishing Scams: Cybercriminals often disguise themselves as trusted entities, sending deceptive emails to steal sensitive information. These scams are getting more sophisticated, making them harder to detect

Ransomware: This type of malware locks users out of their data, demanding a ransom for its release. High-profile attacks on healthcare and financial institutions have highlighted the vulnerabilities in critical systems.

Malware and Spyware: Malware infiltrates devices through shady downloads or malicious ads, while spyware silently gathers data without user knowledge. Both pose significant risks to personal and organizational security.

Data Breaches: Weak security measures make many companies easy targets for hackers. Data breaches can lead to the theft of personal information and financial data, causing major reputational damage.

DDoS Attacks: Distributed Denial-of-Service attacks flood websites with traffic, crashing servers and disrupting business operations. These attacks can severely impact e-commerce and online services.

There are several challenges we face trying to combat these threats,

A significant challenge is the lack of cybersecurity awareness among individuals and businesses. Many fall victim to scams due to ignorance of basic security practices. There’s a critical shortage of skilled cybersecurity professionals in India. The gap between demand and supply hinders effective protection against cyber threats. Many organizations, particularly small businesses, underinvest in cybersecurity, leaving them vulnerable to attacks.

Fighting Back: India’s Cybersecurity Response

Government Initiatives: The Indian government is actively enhancing cybersecurity through initiatives like the National Cyber Security Policy and Cyber Swachhta Kendra, aimed at promoting best practices and improving resilience.

Public Awareness Campaigns: Educating the public about cybersecurity is essential. Awareness campaigns can help individuals recognize threats and adopt safer online behaviors.

Strengthening Regulations: Enhanced laws and enforcement can deter cybercriminals. A dynamic regulatory framework is needed to keep pace with evolving threats.

Investing in Technology: Embracing advanced technologies like AI and machine learning can help organizations detect and respond to threats in real time.

Conclusion

As India embraces the digital age, prioritizing cybersecurity is crucial. The threats are real and evolving, but with awareness, technology, and collaboration, India can turn the tide against cybercrime. It’s time to build a safer digital future, ensuring that technological benefits are not overshadowed by risks. If you are being scammed, you can report the incident to the cyber crime portal :
https://cybercrime.gov.in/Webform/Helpline.aspx
September 24, 2024
India Elected Vice-Chair of Indo-Pacific Supply Chain Council

India Elected Vice-Chair of Indo-Pacific Supply Chain Council

India has been elected as Vice-Chair of the Supply Chain Council, the Commerce and Industry Ministry announced on Wednesday.
In a significant milestone, the 14 partner countries of the Indo-Pacific Economic Framework (IPEF) have established three councils to enhance economic cooperation in the region. Under the Indo-Pacific Economic Framework for Prosperity (IPEF) Agreement related to Supply Chain Resilience, this step is seen as a move to find alternatives to China for the production of goods.
The inaugural virtual meetings of the Supply Chain Council (SCC), Crisis Response Network (CRN), and Labor Rights Advisory Board (LRAB) marked a major advancement in cooperation among partner countries for strengthening supply chain resilience in the region, according to the Commerce Ministry.
During these meetings, the 14 IPEF partners reaffirmed their commitment to closer cooperation to enhance the resilience and competitiveness of critical supply chains, preparing for and responding to supply chain disruptions that threaten economic prosperity while strengthening labor rights.
India is expected to play a crucial role in developing a resilient Supply Chain in the Indo-Pacific region. In June 2024, at the IPEF Ministerial meeting in Singapore, Secretary of the Department of Commerce, Sunil Barthwal, highlighted India’s potential to become a major player in the global supply chain due to its skilled manpower, natural resources, and policy support. Government initiatives are actively seeking solutions to ensure India’s participation in diverse and predictable supply chains.
As part of the Supply Chain Agreement, the IPEF partners established three supply chain bodies: a Supply Chain Council to focus on strengthening supply chains for critical sectors and goods, a Crisis Response Network to facilitate a collective emergency response to disruptions, and a Labor Rights Advisory Board to strengthen labor rights and workforce development across regional supply chains.
India shared its views on the importance of a resilient supply chain network and ongoing consultations with stakeholders on critical sectors from the perspective of national security, public health, and economic well-being. Emphasis was placed on collaboration in the skill development sector, identifying gaps, and ensuring the right skills across economies, including technical assistance for workforce development and digitalization for a resilient supply chain ecosystem.
During the meetings, each of the three supply chain bodies elected a Chair and Vice Chair for a term of two years. The elected chairs and vice chairs are:
– Supply Chain Council: USA (Chair) and India (Vice Chair)
– Crisis Response Network: Republic of Korea (Chair) and Japan (Vice Chair)
– Labor Rights Advisory Board: USA (Chair) and Fiji (Vice Chair)
The Supply Chain Council adopted Terms of Reference and discussed initial work priorities, which will be further explored at its first in-person meeting in Washington, D.C., in September 2024 during the Supply Chain Summit. The Crisis Response Network discussed priorities, including conducting a tabletop exercise, and planned its first in-person meeting alongside the Supply Chain Summit. The Labor Rights Advisory Board discussed priorities for strengthening labor rights across IPEF supply chains and focused on labor provisions in the IPEF Clean Economy Agreement and Fair Economy Agreement.
The IPEF partners emphasized the importance of the upcoming in-person meeting in Washington, D.C., in September 2024.
Launched on May 23, 2022, in Tokyo, the IPEF includes 14 partner countries: Australia, Brunei, Fiji, India, Indonesia, Japan, Republic of Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, Vietnam, and the USA. The IPEF aims to strengthen economic engagement and cooperation among its member countries, promoting growth, economic stability, and prosperity in the region.

August 1, 2024
Government and Industry Collaborate to Boost India’s Toy Sector

Government and Industry Collaborate to Boost India’s Toy Sector

Government and industry leaders will convene on July 8 to discuss strategies for enhancing the growth of India’s toy sector, focusing on boosting manufacturing capabilities and increasing exports. The meeting, organized by Invest India in collaboration with the Toy Association of India, aims to address key issues such as regulatory developments, India’s positioning as a global toy hub, and integrating local manufacturers into the global supply chain.
Naresh Kumar Gautam, Senior Vice-President of the Toy Association of India, highlighted that the government has already implemented several initiatives to stimulate sectoral growth. An international fair is concurrently being held from July 6-9 at Pragati Maidan, showcasing products from over 400 domestic toy manufacturers to more than 150 foreign buyers representing 35 nations. The Prime Minister’s endorsement of the sector in his ‘Mann ki Baat’ address has further galvanized efforts to bolster this labor-intensive industry.
Gautam emphasized the need for fiscal support measures for stallholders and announced the upcoming ‘Toy Industry CEOs Meet’ on July 8, which will be attended by senior officials from DPIIT, Invest India, and industry representatives.
Highlighting significant developments, Gautam noted that toy exports have surged by 240% since 2014, while imports have decreased by 52% during the same period. He underscored substantial opportunities for women, with an estimated 70% of the workforce in the sector being women. Construction has also commenced on a major toy cluster in Noida, which is poised to become India’s largest, with 150 individuals already allocated land for setting up toy manufacturing units.

July 9, 2024
SEBI In Action: Market Watchdog Caps Opening Price of IPO for NSE Emerging Segment

SEBI In Action: Market Watchdog Caps Opening Price of IPO for NSE Emerging Segment

To ensure uniformity in the opening price discovery and equilibrium price for SME platform IPOs across exchanges, the Securities and Exchange Board of India (SEBI) has decided to impose a cap of up to 90 percent over the issue price for SME IPOs.
The National Stock Exchange (NSE) announced in a circular on Thursday, July 4, that the opening price of shares listed under the small and midsize enterprise (SME) category will be capped. According to the circular, effective immediately, shares listed under the SME segment may only be priced “up to 90 percent over the issue price.”

Price Control Cap on SME Segment

This 90 percent price control cap will exclusively apply to the SME segment and not to mainboard IPOs, as clarified by the NSE. The circular took effect on July 4, 2024.
The NSE has set an upper limit on the opening price of shares on its NSE Emerge platform, used for SME listings, to address concerns.
The announcement coincides with the listing of two SME IPOs at significant premiums this week. On July 1, Shivalic Power Control’s shares were listed at Rs 311 apiece, a 211 percent premium. On July 2, Divine Power Energy’s shares debuted at Rs 155, a premium of more than 287 percent.

SEBI’s Previous Observations

SEBI has observed patterns of price manipulation. SEBI Chairperson Madhabi Puri Buch stated, “The market has advised us on how to identify and address such cases.”
SEBI is collaborating with advisors to comprehend and analyze the data. “Manipulation is simple both during the IPO and in subsequent years. Additional disclosure regarding risk factors is required,” Buch noted.

July 5, 2024
Apple’s AI in Limbo: How the EU’s Digital Markets Act Throws a Wrench in Innovation
Apple’s AI Rollout Stalled in Europe: The EU’s Digital Markets Act Throws a Wrench in the Works
Apple’s grand plans for rolling out its latest artificial intelligence (AI) features in Europe have been thrown into disarray by the European Union’s (EU) Digital Markets Act (DMA). This act, designed to promote a more competitive digital marketplace, has unfortunately collided with Apple’s way of doing things, particularly regarding user privacy and app distribution, creating a frustrating impasse.
Hold Up on the AI Train
The centerpiece of Apple’s AI ambitions, a project mysteriously named “Apple Intelligence,” has been placed on hold for all its European users. While the exact features of this offering remain under wraps, it likely encompasses a range of AI-powered services intended to seamlessly integrate within the Apple ecosystem.
Adding to the woes, features like effortless iPhone mirroring and enhanced screen sharing capabilities via SharePlay are also stuck in limbo across the EU.
Interoperability Woes: Security Concerns vs. Openness
The core of the problem boils down to the DMA’s push for interoperability. These provisions aim to dismantle the walled gardens created by tech giants like Apple, potentially forcing them to:
Allow users to download applications from third-party app stores outside the tightly controlled App Store.
Permit alternative payment methods within apps, effectively bypassing Apple’s App Store commission fees.
Apple, however, is deeply concerned that such interoperability mandates could come at the cost of user privacy and security. They argue that loosening control over app distribution might expose users to security vulnerabilities by allowing potentially unvetted apps onto iPhones.
Finding Common Ground: A Delicate Dance
Apple maintains its unwavering commitment to user safety and is actively seeking collaboration with the European Commission to find a solution that satisfies both parties. Ideally, they hope to introduce their new features while simultaneously upholding the high standards of user privacy and security they strive for.
The Potential Impact: A Double-Edged Sword
This delay in rolling out AI features for the European market has the potential to cause a two-pronged problem:
European users might miss out on the convenience and innovative experiences promised by these new AI functionalities.
Apple might be forced to significantly alter its AI implementation strategy to comply with the DMA regulations.
The Future Unfolds: A Precedent in the Making
The outcome of Apple’s discussions with the EU Commission will not only determine the fate of AI features and app distribution for Apple devices in Europe, but it could also set a crucial precedent. How other tech giants navigate the regulations laid out by the DMA will be closely watched, potentially shaping the entire digital landscape within the European region.
Stay Tuned for the Next Chapter
This story is far from over. We’ll be keeping a close eye on developments, with The Indian Express and other tech news outlets serving as our guides, to see how Apple and the EU Commission eventually resolve this situation. Their resolution could very well define the future path of AI integration within smartphones and set new standards for user privacy.
July 3, 2024
Nvidia Stock Soars: AI Powerhouse Faces New Competition and Evolving Regulations
Nvidia Stock Soars: AI Powerhouse Faces New Competition and Evolving Regulations

Nvidia’s stock price has tripled in just a year, leaving investors pondering whether to hold or sell. Nvidia’s story is one of innovation and adaptation, evolving from a pioneer in computer graphics to a leader in artificial intelligence.
Founded in 1993 by a trio of electrical engineers with a vision to bring 3D graphics to the mainstream. They entered the market with the RIVA series of graphics processors, targeting the burgeoning PC gaming market.
Nvidia, the graphics processing unit (GPU) giant and a leader in artificial intelligence (AI) technology, has been making headlines for all the right reasons lately. Their stock price has skyrocketed, tripling in value within the past year. This surge reflects investor confidence in the company’s future, but it also raises questions about whether it’s time to buy, sell, or hold.
However, Nvidia’s journey isn’t without its challenges. The tech landscape is constantly shifting, and new developments are emerging that could impact their market position. One key development is the rumored collaboration between Apple and Meta on AI technology. If this partnership comes to fruition, it could create a formidable competitor for Nvidia in the AI hardware space.
Beyond competition, Nvidia, along with other AI leaders, needs to navigate the evolving regulatory landscape. The European Union’s Chat Control Law, for example, highlights growing concerns around privacy and the potential misuse of AI. Nvidia will need to demonstrate its commitment to responsible AI development and ensure its technology adheres to these evolving regulations.
Nvidia’s Strengths:
Market Leader: Nvidia is currently the dominant player in the AI hardware market, boasting powerful GPUs specifically designed for AI applications.
Innovation: They have a proven track record of innovation, constantly pushing the boundaries of graphics and AI technology.
Diversification: Their presence extends beyond gaming and AI, with applications in professional computing, autonomous vehicles, and the potential metaverse.
Challenges and Opportunities:
Competition: Potential collaboration between Apple and Meta could pose a serious threat to their AI market dominance.
Regulations: Navigating evolving AI regulations will be crucial for continued growth and responsible development.
Market Fluctuations: The current stock price surge might be an opportune moment for investors to cash out, but it could also indicate continued growth potential.
Looking Ahead:
Nvidia’s future hinges on its ability to adapt and maintain its edge in a dynamic market. Continued innovation, strategic partnerships, and a commitment to responsible AI development will be key factors in their success. Investors, meanwhile, will be closely watching how Nvidia navigates these challenges and translates its technological prowess into long-term financial gains.
July 1, 2024