Abstract:

Small and Medium Enterprises (SMEs) are critical drivers of India’s economic growth, contributing significantly to GDP, employment generation, and innovation. However, the advent of rapid digitalization, intensified by Industry 4.0 technologies and post-pandemic market shifts, has placed immense pressure on
SMEs to adapt for survival and competitiveness. This study investigates digital transformation strategies that facilitate sustainable business growth for Indian SMEs. Employing a mixed-methods approach, we combine an extensive literature review with semi-structured interviews of SME leaders to identify key enablers, challenges, and best practices. Findings reveal that integrated digital ecosystems, data-driven decision-making, process automation, and customer-centric innovation are pivotal to long-term sustainability. The proposed framework emphasizes aligning digital strategies with organizational vision, resource optimization, and continuous capability development. This research provides actionable insights for SME owners, policymakers, and practitioners seeking to navigate digital disruption and enhance competitiveness in the Indian market.
Keywords: Digital Transformation, SMEs, Sustainable Growth, Industry 4.0, Innovation Strategy, Indian Business
Environment