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Today, only 5% of MSMEs are fully digitized. With customers embracing technology in their daily lives, it has changed their buying habits and behavior. There is a wide tech adoption across sectors and businesses’ operational processes. MSMEs, in particular, are turning to technology to expand their reach, streamline operations, and improve customer experiences across sectors. Adoption of drone technology, increased use of UPI payments, e-governance, smart infrastructure, 5G for education – adoption of technology is reflected well across sectors. Tier II, III cities are actively using tech to not just keep up, but also build their own businesses. Interestingly, of the 115,000 start-ups registered by the DPIIT as of December 2023, around 50% were based in Tier 2 and 3 cities. A Deloitte report stated that the surge in smartphone users particularly benefits Tier 2 and Tier 3 cities as e-commerce grew by 64% and 50% respectively. Today, 63% of e-commerce orders originate from these smaller cities, reflecting how well digital has transformed rural India. From the launch of Atamnirbhar Abhiyan, Digital India, Startup India, Mudra Yojna to GST reforms, the Indian government is making strides to ensure faster digitalization of MSMEs in India. By embracing digital tools, MSMEs can showcase products, personalize marketing, optimize logistics, and enhance customer engagement, ultimately delivering greater value. This digital ecosystem is leveling the playing field, enabling MSMEs to scale, reduce costs, and achieve sustainable growth. For MSMEs residing in tier II, III cities, the rapid digitalization, lower operational costs and customers’ increasing demand for premiumization are catalyzing their digital journey.