Revised investment and turnover explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
S.O. 1364(E), dated 21 March 2025, amends only paragraph 1 of the Udyam notification S.O. 2119(E). It replaces the investment and turnover figures for micro, small and medium enterprises, and it came into force on 1 April 2025. These are now the classification figures.
Micro: investment in plant and machinery or equipment not above Rs 2.5 crore and turnover not above Rs 10 crore. Small: Rs 25 crore and Rs 100 crore. Medium: Rs 125 crore and Rs 500 crore. These are the figures as substituted by S.O. 1364(E) with effect from 1 April 2025. Nothing else in S.O. 2119(E) was amended.
What S.O. 1364(E) is
It is a notification of the Ministry of Micro, Small and Medium Enterprises, made "in exercise of the powers conferred by sub-section (1) read with sub-section (9) of section 7 and sub-section (2) read with sub-section (3) of section 8" of the MSMED Act, 2006, "after obtaining the recommendations of the Advisory Committee in this behalf". It does not amend the Act; it amends the earlier notification, S.O. 2119(E) of 26 June 2020. Section 7(9) is the power to vary the criteria; see our post on section 7(9). The Advisory Committee is covered in our post on section 7(2) to (8).
Paragraph 1 of S.O. 1364(E): the substitutions
It amends paragraph 1 of S.O. 2119(E) clause by clause, by substituting words.
| Clause of para 1 | Words replaced | Replaced by |
|---|---|---|
| (i) micro, investment | "one crore" | "two crore and fifty lakh" |
| (i) micro, turnover | "five crore" | "ten crore" |
| (ii) small, investment | "ten crore" | "twenty five crore" |
| (ii) small, turnover | "fifty crore" | "one hundred crore" |
| (iii) medium, investment | "fifty crore" | "one hundred twenty five crore" |
| (iii) medium, turnover | "two hundred and fifty crore" | "five hundred crore" |
Old and new figures side by side
| Category | 2020 investment | 2020 turnover | Current investment | Current turnover |
|---|---|---|---|---|
| Micro | Rs 1 crore | Rs 5 crore | Rs 2.5 crore | Rs 10 crore |
| Small | Rs 10 crore | Rs 50 crore | Rs 25 crore | Rs 100 crore |
| Medium | Rs 50 crore | Rs 250 crore | Rs 125 crore | Rs 500 crore |
In each case the ceiling is "does not exceed", and both the investment and the turnover tests apply together, as paragraph 1 of S.O. 2119(E) provides. The 2020 columns are history. Use the current columns for any period from 1 April 2025. If you are not sure which category you are in on these figures, our Udyam registration team can check it against your accounts.
Paragraph 2 of S.O. 1364(E): when it applies
"This notification shall come into force with effect from the 1st day of April, 2025." The notification is dated 21 March 2025, so it was published before it took effect. The text does not say anything about transition, about pending registrations or about what happens to enterprises whose category changes. It does not repeat paragraph 8 of S.O. 2119(E), so the transition rules in that paragraph continue as written; see our post on graduation and reverse graduation. This article does not go beyond the text on how the portal applied the change.
What stayed the same
S.O. 1364(E) amends only paragraph 1. The rest of S.O. 2119(E) is unchanged by it:
- the composite test and the "either ceiling moves up, both must fall to move down" rule in paragraph 3;
- the method for plant and machinery or equipment in paragraph 4 and for turnover in paragraph 5, including the exclusion of exports;
- registration, updation, graduation and grievance redressal in paragraphs 6 to 9.
Note that the changes are to the figures alone. The wording "investment in plant and machinery or equipment" and "turnover" in paragraph 1 stays as before.
Three layers of figures
| Layer | Source | Status |
|---|---|---|
| Original | Section 7(1) of the Act, 2006 | Figures for plant and machinery or equipment only; replaced in practice by notification |
| 2020 | Paragraph 1 of S.O. 2119(E) | Replaced by S.O. 1364(E) from 1 April 2025 |
| Current | Paragraph 1 of S.O. 2119(E) as substituted by S.O. 1364(E) | In force from 1 April 2025 |
For the Act's original text, see section 7(1).
What S.O. 1364(E) does not say
- It does not change the Act's protections for suppliers; those turn on the definitions in section 2.
- It does not say how the change affects existing registrations or benefits; it is silent.
- It does not amend paragraphs 2 to 9 of S.O. 2119(E).
- It does not say whether the figures will be revised again.
Practical examples
Example 1: higher ceiling, same business. An enterprise with investment of Rs 2 crore and turnover of Rs 8 crore would have been small under the 2020 figures (investment above Rs 1 crore). On the current figures it is within Rs 2.5 crore and Rs 10 crore, so it is micro. This is an illustration only.
Example 2: turnover decides. An enterprise has investment of Rs 20 crore and turnover of Rs 110 crore. Investment is within the small ceiling of Rs 25 crore, but turnover is above Rs 100 crore, so it is not small. It fits the medium category if its figures are within Rs 125 crore and Rs 500 crore.
Example 3: an old figure in a document. A proposal quotes "micro: Rs 1 crore and Rs 5 crore". Those are the 2020 figures and were replaced from 1 April 2025. Check the date of the document and replace the figures if it speaks of the present.
Common mistakes
- Quoting the 2020 or the 2006 figures as current.
- Looking only at investment or only at turnover.
- Thinking the whole of S.O. 2119(E) was replaced; only paragraph 1 was amended.
- Reading the figures as applying before 1 April 2025.
Need help applying the 2025 limits?
If your enterprise sits near a ceiling, or you want to update a registration after the change, it pays to check the figures against your records. Our Udyam registration team can help you with classification and updating.
Key takeaways
- S.O. 1364(E) of 21 March 2025 amends only paragraph 1 of S.O. 2119(E).
- Current ceilings: micro Rs 2.5 crore and Rs 10 crore; small Rs 25 crore and Rs 100 crore; medium Rs 125 crore and Rs 500 crore.
- It took effect on 1 April 2025.
- Both investment and turnover must be within the ceiling of a category.
- The rest of S.O. 2119(E) continues unchanged by this notification.
Read next
- Paragraph 1 of the Udyam Notification (S.O. 2119(E)): Classification of enterprises
- Paragraph 9 of the Udyam Notification (S.O. 2119(E)): Facilitation and grievance redressal
- MSME Classification Under S.O. 1364(E) and Udyam Registration
- MSME Classification: Micro, Small and Medium Criteria
Disclaimer: Based on the Micro, Small and Medium Enterprises Development Act, 2006 (official text, not amended by the Jan Vishwas Acts of 2023 or 2026) and the Udyam notifications S.O. 2119(E) of 26 June 2020 and S.O. 1364(E) of 21 March 2025, read with later developments noted in the article, as on 30 September 2026. Notifications, rules and the Udyam portal change; verify the current position before acting.