Revision in the definition of Micro Small and Medium Enterprises (MSME)

Revision in the definition of Micro Small and Medium Enterprises (MSME)
Delivering the economic package, part of the Aatmanirbhar Bharat Abhiyaan, Finance Minister announced revisions in the definition of Micro Small and Medium Enterprises (MSME) on May 13, 2020. However based on representation from industry, a special meeting of Cabinet Committee on Economic Affairs (CCEA) held on June 01,2020 approve further upper revision in the definition of MSME. Earlier, the MSMEs were defined on the basis of investments put in, now the revised definitions will also include turnover of the company. Three parts of the revised MSME definition are :
  • Investment limit for MSME increased
  • Additional criteria of turnover size for recognition of MSME introduced
  • Distinction between manufacturing and service MSME removed
  • Export turnover will not be counted in the limits of turnover for any category of MSME units whether micro, small or medium.
  • The revision in the definition of MSME is done after 14 years.
The definition of micro manufacturing and services unit increased to ₹1 crore of investment and ₹5 crore of turnover. The limit of small unit increased to ₹10 crore of investment and ₹50 crore of turnover. The limit for medium manufacturing and service units will be ₹50 crore of investment and ₹250 crore of turnover.

Revised MSME Classification will be applicable w.e.f 1st July 2020
MSME definition revised  #MSME New Definition
Notification S.O. 1702(E) dated 01/06/2020 of revised MSME definition:


MSME registration applicable to traders? Read here MSME / Udyam registration for Traders

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