Micro, Small, and Medium Enterprises (MSMEs) are central to India’s economic growth, employment generation, and regional balance, yet they remain constrained by traditional marketing limitations such as low visibility, high customer acquisition costs, and dependence on intermediaries. The diffusion of affordable digital technologies social media, messaging platforms, e-commerce marketplaces, and digital payment systems has opened new avenues for MSMEs to modernize marketing functions, increase outreach, and enhance competitiveness. This paper examines the transformation of marketing practices in Indian MSMEs through digital adoption. A conceptual framework is proposed that links adoption drivers (digital literacy, infrastructure readiness, access to finance, ecosystem support) to marketing capabilities (personalization, customer engagement, analytics) and performance outcomes (market reach, conversion, revenue share, repeat purchase). A Digital Marketing Adoption Index (DMAI) is introduced to capture adoption depth and effectiveness. Using case-based evidence and secondary data, the study identifies key challenges such as infrastructural gaps, limited skills, and ROI measurement, while also highlighting opportunities in social commerce, vernacular content, and data-driven strategies. The findings provide theoretical contributions to digital adoption literature and practical insights for policymakers, platform providers, and MSME stakeholders aiming to strengthen India’s digital economy.

MSMEs; Digital Transformation; Marketing Functions; India; Social Commerce; Digital Adoption Index