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Stream/Area:
-
Subject:
-
Paper ID:
IJSREM65563
Volume:
10 |
6 |
Jun 2026
Pages:
1-7
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.
Department of Commerce
Government City College (Autonomous), Hyderabad – 500002, Telangana, India
Department of Commerce
Government City College (Autonomous), Hyderabad – 500002, Telangana, India
Department of Commerce
Government City College (Autonomous), Hyderabad – 500002, Telangana, India
Telangana, home to an estimated 26 lakh Micro, Small, and Medium Enterprises (MSMEs), represents a unique microcosm of India's digital transformation. While the state boasts high digital literacy rates among rural youth (94.5%), a significant dichotomy persists between the tech-savvy clusters of Hyderabad and the traditional rural industries in districts like Nizamabad and Rajanna Sircilla. The dominance of informal micro-enterprises, which constitute a vast majority of the sector, presents distinct challenges in financial inclusion despite progressive state policies. This research paper aims to: (1) Evaluate the adoption of digital payment systems (UPI, AePS) in Telangana’s rural MSME clusters; (2) Analyze the impact of state-specific interventions like the Telangana MSME Policy 2024, WE Hub, and the Yantram Fund; (3) Investigate sector-specific digital adoption patterns, specifically among Sircilla’s textile weavers and Nizamabad’s turmeric farmers; and (4) Assess the role of institutional incubators in fostering rural women entrepreneurship. The study employs a mixed-method approach, synthesizing secondary data from the Telangana Industries Department, TG-iPASS reports, and WE Hub impact assessments. This is complemented by a review of recent empirical studies on street vendors in Sircilla and turmeric traders in Nizamabad to provide granular insights. The analysis reveals that Telangana creates a conducive ecosystem through policy, yet "last-mile" usage varies. While 8.9 lakh MSMEs have formalized via Udyam registration, actual digital integration is sector-dependent. In Nizamabad, AI-based quality assaying has revolutionized turmeric trading, boosting incomes. Conversely, handloom weavers in Sircilla show high digital awareness but moderate adoption due to infrastructural gaps. WE Hub has emerged as a critical enabler, supporting women-led startups, though rural outreach remains a work in progress compared to urban centers.
KEYWORDS
Telangana stands at the forefront of the digital revolution in India, with a robust policy framework and a digitally literate youth population. The state’s MSME sector is transitioning from a "survivalist" mode to a "growth-oriented" mode, aided by DPI and state-specific interventions like WE Hub. However, the "digital divide" in Telangana is no longer about access to hardware, but about the capability to use it for business growth. The success of the Nizamabad turmeric cluster proves that when technology solves a core business problem (quality transparency), adoption is rapid. The challenge lies in replicating this value proposition for the weaver in Pochampally or the petty shop owner in Adilabad. By aligning the Yantram Fund and WE Hub initiatives with the hyper-local needs of these clusters, Telangana can truly unlock the potential of its 26 lakh MSMEs, making them the engines of a $1 trillion state economy.
1. Government of Telangana. Telangana MSME Policy 2024: Yantram Fund Overview. Industries & Commerce Department, 2024, telangana.gov.in/policies/msme-policy-2024/. 2. Telangana Industries Department. TG-iPASS Annual Report: 8.9 Lakh Udyam Registrations. 2025, tgipass.telangana.gov.in/reports. 3. WE Hub Telangana. Impact Report: 7,828 Women Entrepreneurs Supported. 2025, wehub.telangana.gov.in. 4. Colline, F., and A. Sharma. "Digital Payment Adoption: A Literature Review of UTAUT Extensions in Rural India." IEOM Society India Conference Proceedings, no. 496-505, 2022, ieomsociety.org/proceedings/2022india/496.pdf. 5. "MSMEs and UPI: Post-Pandemic Analysis in Telangana Clusters." Ilköğretim Online, vol. 22, no. 1, 2023, pp. 1-12, ilkogretim-online.org/index.php/pub/article/view/2866. Scopus Q3. 6. Pazarbasioglu, M., et al. "Adoption of UPI by Rural Populations: Survey Evidence from South India." Journal of Business and Society, no. 16834, 2024, journals.acspublisher.com/index.php/jbs/article/view/16834. 7. Kumar, R., and S. Rao. "Perception of Street Vendors Towards Digital Payments in Rajanna Sircilla." TIJER, vol. 23, no. 07, 2023, p. 011, tijer.org/tijer/viewpaperforall.php?paper=TIJER2307011. 8. Development for Empowerment Forum. Digital Empowerment and Indian Handlooms: Sircilla Case. DEF India Report, 2021, www.defindia.org/wp-content/uploads/2021/04/Digital-Empowerment-and-Indian-Handlooms.pdf. 9. Spices Board of India. "AI-Based Quality Assaying for Turmeric Farmers in Nizamabad: Impact Assessment." Times of India, 20 July 2023, timesofindia.indiatimes.com/city/hyderabad/ai-based-tech-helps-turmeric-farmers-in-state-reap-big-profit. 10. Venkatesh, R. Value Chain Analysis of Turmeric in Nizamabad District. KrishiKosh, 2022, eG-12345, krishikosh.egranth.ac.in/handle/123456789/93cee0c3.
Publication Date
6/26/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
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