What is the new definition of MSMEs?

What is the new definition of MSMEs?


Anil Ganga

Anil Ganga

216 week ago — 2 min read

The Government of India as part of economic reforms modified the definition of the Micro Small & Medium Enterprises (i.e. MSMEs) while announcing 20 Lakh Crore package in the name of Atmanirbhar Bharat Abhiyan or Self Reliant India Movement to revive the economy from the clenches of Covid-19.

Also read: FM announces measures to boost MSMEs; change in definition of ‘MSME’

The new definition of MSMEs is as follows:

What is Micro Enterprise?

Investments less than Rs 1 Cr and turnover of less than Rs 5 Cr

What is Small Enterprise?

Investment less than Rs 10 Cr and turnover less than Rs 50 Cr

What is Medium Enterprise?

Investment less than Rs 20 Cr and turnover less than Rs 100 Cr

Note: There is another amendment for Medium Enterprise which is yet to notified by the Government of India. The new definition is "Investment less than Rs 50 Cr and turnover less than Rs 200 Cr".

Revised MSMEs

Frequently Asked Questions

What are the changes in the new definition?

Monitory limits are increased and segregation of Manufacturing & Service sector are no more. Definitions are same for any sector.

What is investment?

Investment means amount invested in plant and machinery, equipment, office equipments etc. This shall be actual value of purchase.

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Anil Kumar Ganga

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