India's retail market is on an exciting trajectory, currently ranking among the world's top five and projected to become the third largest by 2030, with a remarkable potential to capture 65% of consumers. This shift is driven by the increasing purchasing power of Gen Z and millennials, as innovative models like Social Commerce, Quick Commerce, and Direct-to-Consumer (D2C) are expected the market to grow to $40 billion and $50 billion, primarily fueled by Tier 2 and Tier 3 cities, small towns and semi-rural area consumers and extension of Tier 1 consumer demand of providing for their lives to be make easy in their routine juggles. Micro, Small, and Medium Enterprises (MSMEs) in sectors such as apparel, footwear, and food processing are making significant strides in both domestic and international markets. The rise of e-commerce presents a fantastic opportunity for these businesses to streamline their operations and transition smoothly through digital or omnichannel models. The COVID-19 pandemic, which highlighted the importance of digital tools, has empowered MSMEs to be agile and resilient, with projections indicating they could contribute $50 billion to e-tailing Gross Merchandise Value (GMV) by 2027. In this evolving landscape, the emphasis is shifting from familiar brand ambassadors to quality and accessibility. Start-ups are effectively leveraging rural manufacturing and harnessing the power of social media to enhance their visibility and reach, payment gateways had eased much in their revenue receiving. E-commerce platforms are increasingly offering live sales opportunities, which can significantly boost revenue generation through efficient logistics. To thrive, small enterprises can benefit from embracing technological advancements such as augmented reality (AR), virtual reality (VR), and the Internet of Things (IoT) artificial intelligence (AI), and machine learning (ML) Data Analytics (DA) giving immersive shopping experiences by enhancing personal relationship with brands. These tools are essential for capturing real-time data and understanding consumer demands better. However, to overcome challenges related to capital access and investment trust, collaborative efforts among government entities and industry stakeholders will be critical. Working together to foster an environment of innovation will enable MSMEs to seize the vast potential of the retail market. The paper will cover the reasons what had made the MSMEs to evolve   through the time that they shows a potential to become pioneer in retail where earlier it had lagged behind and what it has ahead in forthcoming time via statistics taken from. Also here had focused on the issues what SMEs had been facing or could confront and how those can be combatted.