India's technology SME sector is projected to reach $33-36 billion by 2030, with digital services expected to contribute 40-44% of revenue growing at 17-19% CAGR. While these SMEs currently represent 6-7% of India's tech sector revenues, most remain in early stages of AI adoption despite its recognized importance. The report highlights shifting market dynamics, with BFSI's share declining from 55% to 51% and Hi-Tech segment growing from 18% to 21%. Digital services are outpacing traditional IT services by 1.4x, with SMEs employing over 130,000 digital professionals. However, challenges persist in AI monetization, with most firms taking a cautious, project-specific approach rather than building strategic capabilities.