Revised criteria for classifying MSMEs notified by the government

Current Context: The Indian government notified revised criteria for classifying MSMEs on March 21, 2025, with implementation starting April 1, 2025.

• The new classification aims to better align the investment and turnover thresholds with current economic realities.

Key changes include:

• Micro Enterprises: Investment limits raised to ₹2.5 crore, and turnover thresholds increased to ₹10 crore.
• Small Enterprises: Investment limits set at ₹25 crore, while turnover thresholds are now ₹100 crore.
• Medium Enterprises: Investment limits expanded to ₹125 crore, and turnover thresholds increased to ₹500 crore.

These adjustments promote scalability, resilience, and self-reliance within the MSME sector, enabling businesses to grow and thrive in competitive markets while benefiting from targeted government support.

Question:

Q.1 What is the new turnover threshold for Small Enterprises under the revised MSME classification?
a) ₹50 crore
b) ₹75 crore
c) ₹100 crore
d) ₹125 crore

Answer: c) As per the revised MSME classification effective from April 1, 2025, the turnover threshold for Small Enterprises has been increased to ₹100 crore, allowing more businesses to benefit from MSME-related government schemes.