BTL 761 - MSME - Revised Definition – 2025

 

The Banking Tutor’s Lessons

BTL 761                                                                              09-03-2025

MSME - Revised Definition – 2025

 

Recognising their importance, the government has periodically revised the MSME classification criteria to better reflect the changing business environment and help entrepreneurs access essential benefits such as loans, subsidies, and tax incentives.

 

In the Union Budget 2025, Finance Minister announced a major update to the New MSME classification, increasing the investment limit by 2.5 times and doubling the turnover limits. This move is aimed at fostering growth, encouraging innovation, and creating a more enabling ecosystem for MSMEs to flourish.  

 

Revised MSME Classification – 2025

(Rs in Crores)

Enterprise Category	Current Investment Limit	Revised Investment Limit	Current Turnover Limit	Revised Turnover Limit
Micro	1	2.50	5	10
Small	10	25.00	50	100
Medium	50	125.00	250	500

 

Sekhar Pariti

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