Government notifies revisions to investment, turnover criteria for MSMEs; to take effect from April 1

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 will now be classified as micro enterprises, from the previous threshold of ₹1 crore. The turnover limit has been revised from ₹5 crore to ₹10 crore.

Units with investments up to ₹25 crore will be classified as small enterprises, from the earlier ₹10 crore. The turnover limit for such enterprises has been doubled from ₹50 crore to ₹100 crore.

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

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.