HomeNotificationGovt. Raises MSME Investment and Turnover Limits from April 2025

Govt. Raises MSME Investment and Turnover Limits from April 2025

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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

Read More: GSTN Extends Waiver Application Deadline; Taxpayers Can File Until June 30, 2025

Mariya Paliwala
Mariya Paliwalahttps://www.jurishour.in/
Mariya is the Senior Editor at Juris Hour. She has 7+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started her career as a freelance tax reporter in the leading online legal news companies.

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