Revised definition of MSME

The definition of MSME will be revised by raising the Investment limit. An additional criterion of turnover also being introduced. The distinction between the manufacturing and service sector will also be eliminated.

  • Definition of MSMEs will be revised
  • Investment limit will be revised upwards
  • Additional criteria for turnover also being introduced.
  • The distinction between manufacturing and service sector to be eliminated.
  • Necessary amendments to the law will be brought about.

Existing MSME Classification

Criteria: Investment in Plant & Machinery or Equipment
Classification Micro Small Medium
Mfg. Enterprises Investment<Rs. 25 lac Investment<Rs. 5 cr. Investment <Rs. 10 cr.
ServicesEnterprise Investment<Rs. 10 lac Investment< Rs. 2 cr. Investment<Rs. 5 cr.

Revised MSME Classification

  Composite Criteria: Investment And Annual Turnover
Classification Micro Small Medium
Manufacturing & Services Investment< Rs. 1 cr. andTurnover < Rs.5 cr. Investment< Rs. 10 cr.andTurnover < Rs.50 cr. Investment< Rs. 20 cr.andTurnover < Rs.100 cr.

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