Govt notifies revised criteria for classifying MSMEs

The government has notified significant revisions to turnover and investment criteria for classifying MSMEs that will take effect from April 1. Micro, small and medium enterprises (MSMEs) with investments up to 2.5 crore rupees will now be classified as micro-enterprises, from the previous threshold of 1 crore rupees. The turnover limit has been revised from 5 crore rupees to 10 crore rupees.

Units with investments up to 25 crore rupees will be classified as small enterprises, from the earlier 10 crore rupees. The turnover limit for such enterprises has been doubled from 50



crore rupees to 100 crore rupees.

MSMEs with investments up to 125 crore rupees will now be classified as medium enterprises, from the earlier limit of 50 crore rupees. For medium enterprises, the turnover limit has been doubled to 500 crore rupees.

During her budget speech, Union Finance Minister Nirmala Sitharaman had announced new classification criteria for MSMEs, with investment and turnover limits for the classifications proposed to be increased to 2.5 times and two times, respectively.