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 limitย will beย revised upwards
- Additional criteria for turnoverย also being introduced.
- The distinction between manufacturing and service sector to be eliminated.
- Necessaryย amendments to the lawย 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
| ย | Composite Criteria: Investment And Annual Turnover | ||
| Classification | Micro | Small | Medium |
| Manufacturingย & Services | Investment< Rs. 1 cr.ย andTurnover < Rs.5 cr. | Investment< Rs. 10 cr.andTurnover < Rs.50 cr. | Investment< Rs. 20 cr.andTurnover < Rs.100 cr. |