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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