New MSME Definition To Take Effect From April 1, 2025

New Delhi, Mar 22 (KNN) The Ministry of Micro, Small and Medium Enterprises has issued a notification announcing significant changes to the financial thresholds that  define MSME classification in India. 

According to the notification published on March 21, 2025, these amendments will come into effect on April 1, 2025.

The notification (S.O. 1364(E)) modifies the previous classification criteria established in June 2020. Under the new guidelines, the ‘one crore’ threshold will be replaced with ‘two crore and fifty lakh,’ while the "five crore" limit will increase to ‘ten crore.’ 

Similarly, ‘ten crore’ will be raised to ‘twenty five crore,’ and ‘fifty crore’ will become ‘one hundred crore.’

Further adjustments include changing ‘fifty crore’ to ‘one hundred twenty five crore’ and ‘two hundred and fifty crore’ to ‘five hundred crore’ in the relevant sections of the original notification.

These amendments were made by the Central Government after receiving recommendations from the Advisory Committee, exercising powers conferred under section 7 of the Micro, Small and Medium Enterprises Development Act, 2006. 

The notification has been signed by Dr. Rajneesh, Additional Secretary and Development Commissioner.

The government's decision to revise these thresholds likely aims to accommodate inflation and changing economic conditions, potentially allowing more businesses to qualify for MSME benefits and support programs.

(KNN Bureau)