In her address today, the finance minister changed the definition of MSME. So, what shall be MSMEs henceforth:
- Investment limit has been revised upwards for micro enterprises from Rs. 25 lakh to now include investment up to Rs. 1 crore.
Also, turnover will now be a criteria for defining MSMEs and its limit has been pegged at Rs. 5 crore.
Businesses with invesetment of up to Rs 20 crore and turnover of up to Rs 100 crore will be classified as medium enterprises while those with investment of up to Rs 10 crore and turnover of up to Rs 50 crore will be termed as small enterprises.
Those with investment less Rs. 5 crore will be classified as Small scale units. And units with investments of up to Rs. 10 crore will come under the Medium category.