The government has introduced major changes to the turnover and investment criteria for MSME classification, set to take effect from April 1.

Under the revised framework, businesses with investments up to Rs 2.5 crore will now qualify as micro-enterprises, an increase from the previous Rs 1 crore limit. The turnover threshold for micro-enterprises has also doubled from Rs 5 crore to Rs 10 crore.

For small enterprises, the investment limit has risen from Rs 10 crore to Rs 25 crore, while the turnover cap has increased from Rs 50 crore to Rs 100 crore. Similarly, businesses investing up to Rs 125 crore will now fall under the medium enterprise category, up from the earlier Rs 50 crore. Their turnover limit has also doubled, rising to Rs 500 crore.

Union Finance Minister Nirmala Sitharaman announced these updates during her budget speech, stating that the government would raise investment limits by 2.5 times and turnover limits by twice the previous amount to support MSME growth.