Major Update: Government of India Revises MSME Thresholds

The Ministry of Micro, Small, and Medium Enterprises (MSME) has officially updated the classification criteria under the MSME Development Act, 2006. According to Notification No. F. No. P-11/3/2023-POLICY-DCMSME, dated March 21, 2025, the revised limits will take effect starting April 1, 2025.

The updated benchmarks mark a significant shift:

• Investment caps have been raised by 150%

• Turnover ceilings have been doubled across all MSME segments

Reclassified Threshold Limits:

Type of Company	Investment - Current Limit	Investment - Revised Limit	Turnover - Current Limit	Turnover - Revised Limit
Micro	1 Crore	2.5 Crores	5 Crores	10 Crores
Small	10 Crores	25 Crores	50 Crores	100 Crores
Medium	50 Crores	125 Crores	250 Crores	500 Crores

The broader thresholds considerably expand the MSME umbrella, paving the way for more enterprises to access key support schemes, including:

• Priority sector lending eligibility

• Access to government subsidies

• Collateral-free credit under the CGFTMSE

• Additional MSME-specific incentives

This revision signals a strategic shift by the Government to align MSME classifications with the evolving economic landscape, factoring in inflation and industry-scale growth. Businesses approaching or just over the previous limits may now find themselves eligible for a host of supportive measures.

If you have any questions regarding these changes or their impact, please don’t hesitate to reach out to us.

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