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Cybersecurity is emerging as a bigger priority for India's small and medium enterprises (SMEs),
with 84% planning to increase their cybersecurity investments over the next 12–24 months,
according to the SME Digital Insights 2026: Cybersecurity study by Tata Tele Business Services
(TTBS) and CyberMedia Research (CMR).
The study, based on a survey of 800 IT heads and decision-makers across eight Indian cities, found that businesses are placing greater emphasis on cybersecurity as their operations increasingly depend on digital systems and services.
However, the findings also point to a gap between planned investment and existing preparedness. Forty per cent of SMEs surveyed said they had experienced a cyber incident during the previous 24 months, while only 28% said they had made structural cybersecurity improvements following an incident. The study also found that 60% responded with tactical upgrades to security tools rather than broader changes to their security posture.
Continuous monitoring remains another challenge. Only 12% of SMEs said they continuously monitor their cybersecurity environments, while nearly 35% operate multiple security tools but have limited visibility into their overall risk exposure. Budget allocation also remains relatively limited for many businesses. The study found that 46% of SMEs allocate less than 5% of their IT budgets to cybersecurity. Among medium-sized enterprises, 89% said they plan to increase cybersecurity investments over the next 12–24 months.
A shortage of skilled professionals is another concern, with 45% of SMEs identifying a lack of cybersecurity expertise as their biggest implementation challenge.
Artificial intelligence is emerging as both a potential cybersecurity tool and a source of new risks. The study found that 35% of SMEs see AI as a cybersecurity enabler, while 34% expect AI-powered cyber threats to materially affect their businesses over the next 12–24 months.
The findings indicate that Indian SMEs are preparing to spend more on cybersecurity, while challenges around monitoring, expertise and overall security preparedness continue to remain.
The study, based on a survey of 800 IT heads and decision-makers across eight Indian cities, found that businesses are placing greater emphasis on cybersecurity as their operations increasingly depend on digital systems and services.
However, the findings also point to a gap between planned investment and existing preparedness. Forty per cent of SMEs surveyed said they had experienced a cyber incident during the previous 24 months, while only 28% said they had made structural cybersecurity improvements following an incident. The study also found that 60% responded with tactical upgrades to security tools rather than broader changes to their security posture.
Continuous monitoring remains another challenge. Only 12% of SMEs said they continuously monitor their cybersecurity environments, while nearly 35% operate multiple security tools but have limited visibility into their overall risk exposure. Budget allocation also remains relatively limited for many businesses. The study found that 46% of SMEs allocate less than 5% of their IT budgets to cybersecurity. Among medium-sized enterprises, 89% said they plan to increase cybersecurity investments over the next 12–24 months.
A shortage of skilled professionals is another concern, with 45% of SMEs identifying a lack of cybersecurity expertise as their biggest implementation challenge.
Artificial intelligence is emerging as both a potential cybersecurity tool and a source of new risks. The study found that 35% of SMEs see AI as a cybersecurity enabler, while 34% expect AI-powered cyber threats to materially affect their businesses over the next 12–24 months.
The findings indicate that Indian SMEs are preparing to spend more on cybersecurity, while challenges around monitoring, expertise and overall security preparedness continue to remain.
