tdsmaster









Home Investment Master NRI Master Glossary Contact us

MSME - Micro, Small & Medium Enterprises



MSME classification has been updated by the Ministry of Micro, Small & Medium Enterprises which is applicable from 1st July 2020. Government has widen the scope of MSME to much bigger enterprises and now many more enterprises can avail the benefits of MSME.

The enhanced investment criteria and introduction of annual turnover criteria will encourage the startups and thereby support the MAKE IN INDIA and ATAMNIRBHAR BHARAT concept of our Honorable Prime Minister Sri Narendra Modi.

The updated classification uses composite criteria of Investment in Plant & Machinery or Equipments and Annual Turnover.

The classification of MSME from 1st July 2020:

MICRO ENTERPRISES

  • Investment in Plant & Machinery or Equipments should not exceed Rs. 1 Crore (100 lacs) and
  • Turnover should not exceed Rs. 5 Crore

SMALL ENTERPRISES

  • Investment in Plant & Machinery or Equipments should not exceed Rs. 10 Crore and
  • Turnover should not exceed Rs. 50 Crore

MEDIUM ENTERPRISES

  • Investment in Plant & Machinery or Equipments should not exceed Rs. 50 Crore and
  • Turnover should not exceed Rs. 250 Crore
Comparitive Chart of Old and New classification


There were different classification criteria for Manufacturing Enterprises and the enterprises engaged in providing services. Turnover was not a part of criteria to decide the classification of MSME. Lets check out what are the old and new criterias:

Criteria
Micro
Enterprises

Small
Enterprises
Medium
Enterprises

Old
New
Old
New
Old
New
For Manuacturing Units

Investment in Plant & Machinery should not exceed

25 Lacs
-
5 Crore
-
10 Crore
-
For Service Providers

Investment in Equipment should not exceed

10 Lacs
-
2 Crore
-
5 Crore
-
Investment in Plant & Machinery or Equipments for any enterprise should not exceed

-
1 crore
-
10 Crore
-
50 crore
Annual turnover should not exceed
-
5 crore
-
50 crore
-
250 crore



It would be my pleasure to hear for a feedback or for resolving your issues. Do write to me at arpita@tdsmaster.com








content and images copyright tdsmaster.com, 2011-2020