India’s digital economy has grown rapidly through platforms like UPI and open networks like ONDC, but most micro, small and medium enterprises (MSMEs) remain offline. Despite their importance in generating jobs and production, nearly 99% of Indian MSMEs have little or no meaningful online presence, limiting their ability to thrive in a digital-first economy.

A study by SERP Forge, which analysed 40,000 UDYAM-registered MSMEs across seven states, found that only 1.6% have a listed website, and of these, only about 1% have a functional one. Even among functioning websites, very few meet basic standards such as security, mobile friendliness, clear contact details or search visibility, rendering most businesses digitally invisible to customers and partners.

This digital gap has real economic costs as a poor online presence reduces trust, customer discovery, access to credit and export opportunities. With consumers, lenders and government platforms increasingly relying on online search, there is an urgent need for MSMEs to bridge this basic digital readiness gap to fully participate in India’s expanding digital economy.