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Budget 2025: The investment and turnover limits for classification of all MSMEs have been enhanced to ‘2.5 and 2 times, respectively’; here are the latest investment and turnover criteria for MSMEs.
Currently, there are over 1 crore registered MSMEs in India, which employ 7.5 crore people.
The Union Budget 2025-26 has hiked investment and turnover limits for the classification of micro, small and medium enterprises (MSMEs). Currently, there are over 1 crore registered MSMEs in India, which employ 7.5 crore people.
According to the Budget 2025 announcements, any firm with investment up to Rs 2.5 crore and turnover under Rs 10 crore will be classified as “micro”.
A company with investment up to Rs 25 crore and turnover up to Rs 100 crore will be classified as “small” and a firm with investment up to Rs 125 crore and turnover under Rs 500 crore will be classified as “medium”.
Presenting the Budget 2025, Finance Minister Nirmala Sitharaman said that to help them achieve higher efficiencies of scale, technological upgradation and better access to capital, the investment and turnover limits for classification of all MSMEs will be enhanced to “2.5 and 2 times, respectively”.
This will give them the confidence to grow and generate employment for youth, the minister said.
Currently, over 1 crore registered MSMEs, employing 7.5 crore people, and generating 36 per cent of our manufacturing, have come together to position India as a global manufacturing hub.
The MSMEs are responsible for 45 per cent of the country’s exports.
