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Govt Notifies Revised MSME Classification Criteria

2025-03-26

The government has announced revised criteria for classifying Micro, Small, and Medium Enterprises (MSMEs), which will come into effect from April 1. The changes include an increase in both investment and turnover thresholds across all categories.

Micro-enterprises will now be classified as those with investments up to Rs 25 million, up from the previous Rs 10 million, while the turnover limit has been raised to Rs 100 million from Rs 50 million. Similarly, small enterprises will now include units with investments up to Rs 250 million instead of the earlier Rs 100 million, and their turnover limit has been doubled to Rs 1 billion from Rs 500 million. Medium enterprises will now be defined as those with investments up to Rs 1.25 billion, an increase from Rs 500 million, with the turnover threshold raised to Rs 5 billion from Rs 2.5 billion.

These revisions were announced by Finance Minister Nirmala Sitharaman during the Union Budget, where she proposed increasing investment limits by 2.5 times and turnover limits by twice the current values. The updated classification aims to boost the competitiveness of MSMEs, enabling them to scale operations and contribute more effectively to economic growth.

(news on air)