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Major Update: Government of India Revises MSME Thresholds

  • SD Partners
  • Mar 26
  • 1 min read

Updated: Apr 7

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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