MSME definitions revised further to include firm with upto Rs. 250 Crore Turnover


1. As per new definitions, a firm with up to Rs. 50 Cr. investments and upto Rs. 250 crore is classified as a medium enterprise.

2. Union cabinet has approved further changes to definitions of MICRO, SMALL & MEDIUM enterprises, a Rs. 20,000 crore funds to provide equity support to stressed entities in the sector, and Equity infusion of Rs. 50,000 crore into MSMEs through a funds of funds.

3. The definition has been revised in the line with industry reviews and it will help a wider section of Companies to avail various sops announced for the sector,

4. As per the new definition, micro units can have upto Rs. 1 crore investment and turnover of up to Rs. 5 crore while businesses with an investment of up to Rs. 10 crore and turnover of upto Rs. 50 crore will be classified as small.

Revised Definition of MSMEs
Sr. No. Enterprise Pre Amendment  (valid upto  30.06.2020)

Classification was only based on Investment in plant and machinery For manufacturing

Pre Amendment  (Valid upto  30.06.2020)

Classification was only based on Investment in Equipment For service sector

Post Amendment  (w.e.f 01.07.2020) Classification is based on Investment in plant and machinery and Annual
Turnover For both Manufacturing and service sector
1 Micro Less than or up to 25 lakh Less than or up to 10 lakh Investment upto 1cr. and Turnover upto 5 cr.
2 Small More than 25 lakh but upto 5 cr, More than 10 lakh but upto 2 cr, Investment upto 10 cr. and Turnover upto 50 cr.
3 Medium More than 5 cr. but upto 10 cr. More than 2 cr. but upto 5 cr. Investment upto 50 cr. and Turnover upto 250 cr.

Relevant Posts-

MSME Notification dated 01.06.2020 notifying Revised Classification Criteria for MSME
PIB Press Release dated- on Upward revision of MSME definition

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December 2020