The Ministry of Micro, Small, and Medium Enterprises (MSME) has announced a significant revision in the investment and turnover limits for classifying enterprises under the MSME category with effect from April 1, 2025.
The notification modifies the earlier limits set in S.O. 2119(E), published on June 26, 2020, which defined MSME classifications based on investment in plant and machinery or equipment and annual turnover.
Revised MSME Classification Limits
According to the new notification:
- The micro-enterprise threshold has been increased from ₹1 crore to ₹2.5 crore (investment) and from ₹5 crore to ₹10 crore (turnover).
- The small enterprise threshold has been increased from ₹10 crore to ₹25 crore (investment) and from ₹50 crore to ₹100 crore (turnover).
- The medium enterprise threshold has been increased from ₹50 crore to ₹125 crore (investment) and from ₹250 crore to ₹500 crore (turnover).
Impact on MSMEs
This revision is expected to broaden the eligibility for enterprises to benefit from MSME-related schemes, including easier access to credit, lower interest rates, and government incentives. By increasing the thresholds, the government aims to support business growth and promote scalability among MSMEs without losing benefits tied to their classification.
Dr. Rajneesh, Additional Secretary & Development Commissioner, signed the notification, reaffirming the government’s commitment to strengthening the MSME sector, which serves as the backbone of India’s economy.
Conclusion
The move is seen as a progressive step towards fostering entrepreneurship and enabling MSMEs to expand without worrying about losing government support prematurely. The revised classification will come into force from April 1, 2025, providing businesses ample time to adapt to the new criteria.
Notification Details
Notification No. F. No. P-11/3/2023-POLICY-DCMSME
Date: 21st March, 2025
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