Government Revises MSME Classification Criteria

In March 2025, the Indian government announced significant changes to the turnover and investment criteria for classifying micro, small, and medium enterprises (MSMEs), effective 1st April 2025.

Key Points

Micro Enterprises: Investment limit increased from Rs.1 crore to Rs.2.5 crore, turnover limit raised from Rs.5 crore to Rs.10 crore.
Small Enterprises: Investment limit increased from Rs.10 crore to Rs.25 crore, turnover limit doubled from Rs.50 crore to Rs.100 crore.
Medium Enterprises: Investment limit raised from Rs.50 crore to Rs.125 crore, turnover limit increased from Rs.250 crore to Rs.500 crore.
Budget Announcement: Union Finance Minister had proposed increasing MSME investment and turnover limits by 2.5 times and two times, respectively, in her budget speech.