Introduction
The Ministry of Micro, Small and Medium Enterprises (MSME) has significantly revised the investment and turnover thresholds for MSME classification. The changes have been notified vide Notification S.O. 1364(E) dated 21 March 2025. This amendment supersedes the earlier notification S.O. 2119(E) dated 26 June 2020, issued under the Micro, Small and Medium Enterprises Development Act, 2006.
Key Changes
The Notification increases the investment and turnover limits for MSMEs. The revised thresholds for MSME are as follows:
| Enterprise Category | Revised Investment Limit | Revised Turnover Limit |
|---|---|---|
| Micro Enterprises | Increased from ₹ 1 crore to ₹ 2.5 crore | Increased from ₹5 crore to ₹10 crore |
| Small Enterprise | Increased from ₹10 crore to ₹25 crore | Increased from ₹50 crore to ₹100 crore |
| Medium Enterprises | Increased from ₹50 crore to ₹125 crore | Increased from ₹250 crore to ₹500 crore |
Effective Date
The revised thresholds shall come into force from 1 April 2025.
MHCO Comment
The upward revision of thresholds is a welcome move and is expected to benefit a larger number of enterprises, particularly those in the growth stage who were previously at the cusp of losing MSME status due to marginal increases in investment or turnover. With broader criteria, more enterprises will now be eligible for MSME-related incentives such as easier access to credit, priority sector lending, subsidies, and various support schemes offered by the central and state governments.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
