A new study by Tata Tele Business Services (TTBS) and CyberMedia Research (CMR) reveals that 84% of Indian SMEs plan to increase their cybersecurity investments over the next 12-24 months. The ‘SME Digital Insights 2026: Cybersecurity’ study highlights growing recognition of cybersecurity as a strategic business priority amidst evolving cyber threats. Despite strong investment intent, a significant readiness gap persists, with many SMEs relying on reactive measures and facing challenges like lack of expertise.
Indian SMEs Prioritize Cybersecurity Investments
A comprehensive study, ‘SME Digital Insights 2026: Cybersecurity,’ conducted by Tata Tele Business Services (TTBS) and CyberMedia Research (CMR), indicates a significant surge in cybersecurity investment plans among Indian Small and Medium Enterprises (SMEs). The report, released on September 16, 2026, found that 84% of SMEs intend to increase their spending on cybersecurity over the next 12 to 24 months. This trend underscores a shift in perception, with cybersecurity now being viewed as a critical component of business resilience, customer trust, and sustainable growth, rather than solely an IT function.
Readiness Gap Remains a Challenge
While investment intent is high, the study also identified a considerable readiness gap. Approximately 40% of SMEs reported experiencing a cyber incident in the last 24 months, yet only 28% implemented structural cybersecurity improvements post-incident. Many continue to rely on tactical upgrades rather than a comprehensive strengthening of their overall security posture. Furthermore, only 12% of SMEs continuously monitor their cybersecurity environments, with 45% citing a lack of expertise as their primary barrier to effective cybersecurity implementation.
AI Emerges as a Key Enabler
The study also sheds light on the emerging role of Artificial Intelligence (AI) in cybersecurity. 35% of SMEs acknowledge AI’s potential to enhance cyber resilience through intelligent threat detection, automated monitoring, and faster incident response. However, a parallel concern exists, with 34% anticipating AI-powered cyber threats to significantly impact their businesses in the coming 12-24 months. This suggests an opportunity for SMEs to leverage AI alongside continuously managed cybersecurity capabilities.
Tata Teleservices’ Role
Vishal Rally, Chief Revenue Officer at Tata Teleservices, emphasized the company’s commitment to making enterprise-grade cybersecurity more accessible and scalable for SMEs. “At TTBS, our focus is to make enterprise-grade cybersecurity more accessible, scalable and easier to adopt, so SMEs can strengthen their cyber resilience with confidence while continuing to grow and accelerate their digital transformation,” he stated. The findings highlight the opportunity for trusted technology partners to simplify cybersecurity and address capability gaps.
Key Study Findings
- 84% of Indian SMEs plan to increase cybersecurity investments in the next 12-24 months.
- Medium-sized enterprises are leading this trend with 89% planning increased investments.
- 40% of SMEs experienced a cyber incident in the last 24 months.
- Only 28% implemented structural cybersecurity improvements post-incident.
- 45% of SMEs cite lack of expertise as the biggest barrier to effective cybersecurity.
- 35% of SMEs recognize AI’s potential as a cybersecurity enabler.
Source: BSE
