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 Rs 2.5 crore will now be classified as micro enterprises, from the previous threshold of Rs 1 crore. The turnover limit has been revised from Rs 5 crore to Rs 10 crore.
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Units with investments up to Rs 25 crore will be classified as small enterprises, from the earlier Rs 10 crore. The turnover limit for such enterprises has been doubled from Rs 50 crore to Rs 100 crore.
MSMEs with investments up to Rs 125 crore will now be classified as medium enterprises, from the earlier limit of Rs 50 crore. For medium enterprises, the turnover limit has been doubled to Rs 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.
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