The Ministry of Micro, Small, and Medium Enterprises (MSME) has amended the classification criteria for MSMEs under the MSME Development Act, 2006. Effective from April 1, 2025, the revised limits increase the investment and turnover thresholds for micro, small, and medium enterprises. The new limits replace those set in the June 26, 2020, notification. For micro-enterprises, the investment limit has been raised from ₹1 crore to ₹2.5 crore, and the turnover limit from ₹5 crore to ₹10 crore. Small enterprises now have an investment threshold of ₹25 crore (previously ₹10 crore) and a turnover limit of ₹100 crore (previously ₹50 crore). For medium enterprises, the investment limit increases from ₹50 crore to ₹125 crore, and the turnover limit from ₹250 crore to ₹500 crore. These changes aim to expand the eligibility for MSME classification, allowing more businesses to benefit from government schemes and financial incentives.
MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES
NOTIFICATION
New Delhi, the 21st March, 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.
[F. No. P-11/3/2023-POLICY-DCMSME]
Dr. RAJNEESH, Addl. Secy. & Development Commissioner
Note: The principal notification was published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii), vide number S.O. 2119(E), dated the 26th June, 2020.
