Government Revises MSME Classification, Doubles Investment And Turnover Limits In Budget 2025-26
(MENAFN- KNN India)
New Delhi, Feb 1 (KNN) In a significant move to boost India's micro, small and medium enterprises (MSME) sector, Finance Minister Nirmala Sitharaman announced major revisions to the MSME classification criteria in her Budget 2025-26 speech.
The new framework substantially increases both investment and turnover limits across all three categories.
Under the revised classification, micro enterprises will now have an investment limit of Rs 2.5 crore, up from Rs 1 crore, while their turnover ceiling has been doubled to Rs 10 crore from Rs 5 crore.
Small enterprises will see their investment threshold increased to Rs 25 crore from Rs 10 crore, with turnover limits rising to Rs 100 crore from Rs 50 crore.
The most substantial change applies to medium enterprises, where the investment limit has been raised to Rs 125 crore from Rs 50 crore, accompanied by a turnover ceiling of Rs 500 crore, up from Rs 250 crore.
"This reclassification reflects the growing scale and aspirations of India's MSME sector," said Sitharaman during her budget speech. "These revised limits will help more businesses access MSME benefits and contribute to their growth journey."
Industry experts believe this move will enable many enterprises to maintain their MSME status despite scaling up, allowing them to continue benefiting from various government schemes and priority sector lending.
The new classification is expected to come into effect from the next fiscal year, providing a much-needed boost to India's MSME sector, which contributes significantly to the country's GDP and employment.
(KNN Bureau)
MENAFN01022025000155011030ID1109155905
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.