Digital Revolution in Indian SMEs and a Regenerative Managerial Mindset

India is a land of diversity, where diverse cultures, religions, languages and ethnicities have increasingly driven innovation and creativity, giving a boost to the development of small- and medium-sized enterprises (SMEs) in the country. Given that 70% of India’s rural population still primarily depends on agriculture for their livelihood and most of the population lives in villages and Tier 1 and Tier 2 cities, SMEs in these areas have been playing a pivotal role in the inclusive growth of the Indian economy since independence. From cottage industries to the Internet of Things (IoT) and smart technologies or large manufacturing industries, SMEs account for the majority of enterprises worldwide, contributing two-thirds of employment opportunities. Studies conducted in the past show that SMEs have constantly been confronted with various challenges, such as lack of timely access to credit facilities, shortage of manpower and skills, and adoption of new technologies. The outbreak of the COVID-19 crisis in the past few years has crippled their regular activities. However, the crisis has fundamentally changed not only the mindsets, perceptions, and the way businesses, SMEs, organizations, institutions, and individuals operate but also given an opportunity amid the crisis to be more resilient and embrace the digital platforms to survive and eventually achieve success. The aim of this chapter is to identify the future prospects of SMEs through thriving digitization while proposing a framework with a new managerial mindset as a strong force of SME specificities. It also focuses on policy intervention to optimize businesses in order to achieve sustainable economic growth.This chapter is divided into three main parts. The first part focuses on defining and explaining the purpose of SMEs in India, wherein the significant benefits of digitization as a strategy for driving improved performance and productivity of SMEs are explained. The second part deals with describing the challenges and struggles of Indian SMEs from a managerial perspective while focusing on the new mindset of SME managers and owners toward the organic development of their businesses. The third and most crucial part examines policy interventions and support for SMEs and a new entrepreneurial mindset, and it suggests a model for inclusive growth in an economy.