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Amendments in thresholds for classifying any Enterprise as Micro, Small & Medium

Relevant Act:  Micro, Small and Medium Enterprises Development Act, 2006

Relevant Notification:  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
 
Relevant Para: Para 1 of MSME Notification Number S.O. 2119 (E), dated the 26th June, 2020 
 
Present Notification No.:  S.O. 1364(E) dated  21st March, 2025
 
MSME Notification No. S.O. 1364(E) dated 21st March, 2025 amends the threshold limits  for classifying enterprises under the MSME Development Act, 2006 as Micro, Small & Medium Enterprise. Previously , vide MSME Notification Number S.O. 2119 (E), dated the 26th June, 2020,  an enterprise was classified as a micro, small or medium enterprise on the basis of the following criteria, namely:–
 
(i)  a micro enterprise, where the investment in plant and machinery or equipment does not exceed one crore rupees and turnover does not exceed five crore rupees;
 
(ii) a small enterprise, where the investment in plant and machinery or equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees; and
 
(iii) a medium enterprise, where the investment in plant and machinery or equipment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees.
 
 
Now vide MSME Notification No, S.O. 1364(E) dated 21st March, 2025, these limits have been altered as follows:
 
  • Micro Enterprises:

     – Investment limit increased from ₹1 crore to ₹2.5 crore.
     – Turnover limit increased from ₹5 crore to ₹10 crore.

  •    Small Enterprises:

     – Investment limit increased from ₹10 crore to ₹25 crore.
     – Turnover limit increased from ₹50 crore to ₹100 crore.

  •    Medium Enterprises:

     – Investment limit increased from ₹50 crore to ₹125 crore.
     – Turnover limit increased from ₹250 crore to ₹500 crore.

 
  This notification shall come into force with effect from the 1st day of April, 2025.
 

Link: Amendments in thresholds for classifying any Enterprise as Micro, Small & Medium.pdf

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