Digitalization has become a game-changer for MSMEs in India, driving significant transformation, revolutionizing their productivity, creating new economic opportunities, and reshaping employment dynamics. With the integration of advanced digital technologies such as Digital payment Systems, cloud computing, and Artificial Intelligence, MSMEs can significantly enhance operational efficiency, reduce costs, and optimize resource management. These tools enable MSMEs to streamline processes, drive innovation, and improve overall productivity. The digital transformation opens doors to diverse economic opportunities. However, challenges persist, including poor infrastructure, high adoption costs, and a lack of digital literacy. Additionally, the shift towards automation and digitalization brings both job displacement concerns and the creation Tech-driven roles generating employment opportunities. This research explores the economic consequences of digitalization, providing insights and strategies for MSME owners, policymakers, and stakeholders to leverage digital technologies for sustainable growth and India's economic progress.