A new report reveals that four-fifths of India’s micro, small and medium-sized enterprises expect online sourcing platforms to drive growth over the next three years, signalling a rapid digital transformation in the sector.
India’s micro, small and medium-sized enterprises are moving faster towards digital procurement, with a new industry report saying four in five expect online sourcing platforms to become a growth driver over the next three years. The India SME Forum’s Digital Bharat: India Digital Procurement Report 2026 estimates the sector’s procurement economy at Rs 124.9 trillion, based on 51.53 million Udyam-registered MSMEs, and argues that digital buying could help firms cut costs, improve efficiency and strengthen supply chains.
The findings point to a sector that is still only partly online. While 68.7% of businesses said they plan to source raw materials digitally and 61.3% expect to buy machinery online, only about 30% to 40% of procurement spending currently takes place through digital channels. The report also said 64.5% of procurement decisions are still made directly by owners, suggesting that simple, user-friendly platforms remain important if adoption is to widen beyond early users.
Operational pressures remain a major reason for that shift. Price volatility was identified as the biggest procurement problem, cited by 55.7% of respondents, followed by managing multiple suppliers, payment and credit constraints and the lack of a dependable single vendor. Businesses said the most useful platform features would include flexible payments, GST-compliant invoicing, a wider product range, easier ordering and faster delivery.
The report also underlined how public digital procurement has already become a large part of India’s business landscape. Government e-Marketplace, the state-run platform, has reached a cumulative gross merchandise value of Rs 18.4 lakh crore, according to figures cited by the India Brand Equity Foundation. In 2025-26, micro and small enterprises accounted for 68% of orders on GeM and 47.1% of GMV, while women-led enterprises, SC/ST entrepreneurs and startups also secured substantial business through the platform.
At the launch of the report, Shobha Karandlaje, minister of state, said digital procurement should be treated as a strategic capability for a self-reliant India, according to Business Standard. Ateesh Kumar Singh, additional secretary at the Department for Promotion of Industry and Internal Trade, said earlier reforms had laid a foundation but called for further modernisation, including quality- and cost-based selection and revised procurement thresholds. Vinod Kumar, president of the India SME Forum, said MSMEs need to move from occasional online purchases to fully integrated, data-driven procurement systems.
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