Definition of MSME will be revised by raising the Investment limit. An additional criteria of turnover also being introduced. The distinction between manufacturing and service sector will also be eliminated.
- Definition of MSMEs will be revised
- Investment limit will be revised upwards
- Additional criteria of turnover also being introduced.
- Distinction between manufacturing and service sector to be eliminated.
- Necessary amendments to 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. and
Turnover < Rs.5 cr. |
Investment< Rs. 10 cr.and
Turnover < Rs.50 cr. |
Investment< Rs. 20 cr.and
Turnover < Rs.100 cr. |
