Revised MSME definition w.e.f. 01 April 2025
S.O. 1364(E).—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 ‘Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006)’, the Central Government after obtaining the recommendations of the Advisory Committee in this behalf hereby makes the following amendments in the notification of Government of India, Ministry of Micro, Small and Medium Enterprises number S.O. 2119 (E), dated the 26th June, 2020, published in the Gazette of India, Extraordinary, Part-II, Section 3, sub-section (ii), dated the 26th June, 2020, namely:-
1. In the said notification in paragraph 1,–
(i) in clause (i),-
(a) for the words “one crore”, the words “ two crore and fifty lakh” shall be substituted;
(b) for the words “five crore”, the words” ten crore” shall be substituted;
(ii) in clause (ii),-
(a) for the words “ten crore”, the words “twenty five crore” shall be substituted;
(b) for the words “fifty crore”, the words “one hundred crore” shall be substituted;
(iii) in clause (iii),-
(a) for the words “fifty crore”, the words “one hundred twenty five crore”, shall be substituted;
(b) for the words “two hundred and fifty crore”, the words “five hundred crore” shall be substituted;
2. This notification shall come into force with effect from the 1st day of April, 2025.
Revised MSME classification as per Budget 2025:
| Revised MSME Classification | ||||
| Composite Criteria: Investment and annual turnover | ||||
| Classification & Criteria | Existing Limit (in Crore) | Revised Limit (in Crore) | ||
| Investment | Turnover | Investment | Turnover | |
| Micro | <1.00 | <5.00 | <2.50 | <10.00 |
| Small | <10.00 | <50.00 | <25.00 | <100.00 |
| Medium | <50.00 | <250.00 | <125.00 | <500.00 |
Note :
- Investment and Turnover both need to be satisfied.
- The revised MSME definition as per Budget 2025 is notified by Notification NO S.O 1364(E) dated 21st March 2025.
- “<” means less than. E.g. Entity with investment less than 01 cr and turnover less than 5cr is micro unit.
MSME Definition between 01st July 2020 to 31st March 2025
- Investment limit for MSME increased
- Additional criteria of turnover size for recognition of MSME introduced
- Distinction between manufacturing and service MSME removed
- Export turnover will not be counted in the limits of turnover for any category of MSME units whether micro, small or medium.
- The revision in the definition of MSME is done after 14 years.
MSME registration applicable to traders? Read here MSME / Udyam registration for Traders
