The classification criteria for Micro, Small, and Medium Enterprises (MSMEs) in India have evolved over time to better reflect the changing economic landscape. Below is a comparative table outlining the key changes up to February 11, 2025:
| Classification | Investment Limit (up to June 2020) | Investment Limit (June 2020) | Turnover Limit (June 2020) | Investment Limit (February 2025) | Turnover Limit (February 2025) |
|---|---|---|---|---|---|
| Micro | Manufacturing: ≤ ₹25 lakh Services: ≤ ₹10 lakh | ≤ ₹1 crore | ≤ ₹5 crore | ≤ ₹2.5 crore | ≤ ₹10 crore |
| Small | Manufacturing: ≤ ₹5 crore Services: ≤ ₹2 crore | ≤ ₹10 crore | ≤ ₹50 crore | ≤ ₹25 crore | ≤ ₹100 crore |
| Medium | Manufacturing: ≤ ₹10 crore Services: ≤ ₹5 crore | ≤ ₹50 crore | ≤ ₹250 crore | ≤ ₹125 crore | ≤ ₹500 crore |
Notes:
- Pre-June 2020: The MSME classification differentiated between manufacturing and service enterprises, with distinct investment limits for each.
- June 2020 Revision: The government unified the criteria for manufacturing and service sectors, introducing a composite classification based on both investment and turnover.
- February 2025 Update: In the Union Budget 2025-26, the investment and turnover limits for all MSME categories were further enhanced to 2.5 and 2 times the previous limits, respectively, to encourage growth and competitiveness.
These revisions aim to provide MSMEs with greater flexibility to expand their operations without the immediate concern of losing the benefits associated with their classification.