Budget 2025 for MSMEs: With a view to bringing more enterprises under the ambit of the MSME sector, Finance Minister Nirmala Sitharaman on Saturday announced new classification criteria for MSMEs. The minister said the investment limit for MSME classification will be made 2.5 times while turnover limits for MSME classification will be doubled.
“To help them achieve higher efficiencies of scale, technological upgradation and better access to capital, the investment and turnover limits for classification of all MSMEs will be enhanced to 2.5 and 2 times respectively. This will give them the confidence to grow and generate employment for our youth,” Sitharaman said in her speech.
Accordingly, the revised investment criteria would be Rs 2.5 crore from current Rs 1 crore for micro enterprises, Rs 25 crore from current Rs 10 crore for small enterprises, and Rs 125 crore from current Rs 50 crore for medium enterprises.
Likewise, the revised turnover criteria would be Rs 10 crore from current Rs 5 crore for micro enterprises, Rs 100 crore from current Rs 50 crore for small enterprises and Rs 500 crore from current Rs 250 crore for medium enterprises.
“Currently, over 1 crore registered MSMEs, employing 7.5 crore people, and generating 36 per cent of our manufacturing, have come together to position India as a global manufacturing hub. With their quality products, these MSMEs are responsible for 45 per cent of our exports,” the minister added.
The last revision in the MSME definition was made during 2020 post-Covid. According to the criteria, units with Rs 1 crore of investment and Rs 5 crore of turnover were classified as micro whereas units involving Rs 10 crore of investment and Rs 50 crore of turnover were categorised as small enterprises. Further, units with Rs 50 crore of investment and Rs 250 crore of turnover were classified under the medium enterprise category.