Is Your Business an MSME? Here's What Govt Guidelines Say

Aug 22, 2023 Girish Khurana

According to govt’s latest guidelines issued in 2020 post Covid, here’s how MSMEs are defined in India:

The new definition has no difference between manufacturing and service sectors. Also, a new criterion of turnover was added in the previous criterion of classification.

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Micro enterprises: Investment in plant and machinery or equipment does not exceed Rs 1 crore and turnover does not exceed Rs 5 crore

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Small enterprises: Investment in plant and machinery or equipment does not exceed Rs 10 crore and turnover does not exceed Rs 50 crore

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Medium enterprises: Investment in plant and machinery or equipment does not exceed Rs 50 crore and turnover does not exceed Rs 250 crore

The earlier criterion was based on investment in plant and machinery or equipment and different for manufacturing and service units.

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Under new definition, 2.38 crore businesses are registered so far including 2.31 crore micro, 5.65 lakh small, 53,134 medium units

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In Jan this year, the govt launched Udyam Assist Platform (UAP) for non-GST units to get on Udyam portal

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