Revised MSME Classification Criteria Notified

 

1. The Union Government has officially notified the revised investment and turnover criteria for classifying Micro, Small, and Medium Enterprises (MSMEs).
2. Announced earlier in the Union Budget 2025-26, these new criteria will come into effect from April 1, 2025.
    

Updated MSME Classification Criteria
 

Category	Investment Limit	Annual Turnover Limit
Micro Enterprises	Up to ₹22.5 crore (Earlier ₹21 crore)	Up to ₹210 crore (Earlier ₹25 crore)
Small Enterprises	Up to ₹25 crore (Earlier ₹10 crore)	Up to ₹100 crore (Earlier ₹50 crore)
Medium Enterprises	Up to ₹125 crore (Earlier ₹50 crore)	Up to ₹500 crore (Earlier ₹250 crore)

 

Significance of MSMEs in India
 

1. Employment Generation: The sector comprises 5.93 crore registered MSMEs, providing jobs to over 25 crore people.
2. Economic Contribution: MSME-driven industries accounted for 45.73% of India’s total exports in 2023-24.
3. GDP Share: The Gross Value Added (GVA) by MSMEs rose from 27.3% in 2020-21 to 30.1% in 2022-23.
4. Rural Industrialization: MSMEs play a key role in developing rural and backward areas, reducing regional disparities and ensuring equitable wealth distribution.
    

Challenges Faced by MSMEs
 

Despite their significance, MSMEs encounter several hurdles, including:

1. Infrastructure bottlenecks and lack of essential facilities.
2. Slow formalization of businesses and regulatory challenges.
3. Hesitation in adopting new technologies due to costs and training gaps.
4. Weak supply chain integration affecting competitiveness.
5. Limited access to credit and risk capital, hampering expansion.
6. Delayed payments from buyers, affecting cash flow and operations.

 

Government Initiatives to Support MSMEs
 

To enhance the growth and sustainability of MSMEs, the government has launched several initiatives:

1. Udyam Registration Portal – A digital platform simplifying MSME registration and access to benefits.
2. PM Vishwakarma – A scheme providing financial and social support to artisans and craftspeople to improve their livelihood.
3. Prime Minister’s Employment Generation Programme (PMEGP) – A credit-linked subsidy initiative for setting up micro-enterprises in the non-farm sector.
    

SFURTI (Scheme of Fund for Regeneration of Traditional Industries) –

Organizes traditional artisans into clusters to improve productivity and market access.
 

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