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Date: 2025-03-21 Category: Extra Ordinary State: Union Government Country: India

Revision of Definition of MSMEs

Issued by Ministry of Micro, Small and Medium Enterprises · Office of Development Commissioner (MSME)

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Executive Summary & Key Takeaways

What it means

  • The notification revises the definition and classification criteria for Micro, Small, and Medium Enterprises (MSMEs) by increasing the investment and turnover limits.
  • The changes are being made under the powers conferred by the Micro, Small and Medium Enterprises Development Act, 2006, following recommendations from the Advisory Committee.
  • The amendments modify the notification S.O. 2119(E) dated June 26, 2020.

Key Changes

  • The investment limit for Micro enterprises is increased from one crore to two crore and fifty lakh, and the turnover limit is increased from five crore to ten crore.
  • The investment limit for Small enterprises is increased from ten crore to twenty five crore, and the turnover limit is increased from fifty crore to one hundred crore.
  • The investment limit for Medium enterprises is increased from fifty crore to one hundred twenty five crore, and the turnover limit is increased from two hundred and fifty crore to five hundred crore.
  • The revised limits will be effective from April 1, 2025.

Impact Analysis

Impact on MSMEs

  • Action Item: MSMEs should review their investment and turnover figures to determine their revised classification and update their registration accordingly.

Impact on Government

  • Action Item: Government agencies should update their MSME-related policies and programs to reflect the revised definitions.

Impact on Financial Institutions

  • Action Item: Banks and financial institutions should update their lending criteria and internal guidelines to align with the new MSME definitions.

Key Entities Referenced

Ministry of Micro, Small and Medium Enterprises: The central government ministry responsible for formulating and administering rules, regulations and laws relating to micro, small and medium enterprises in India. Micro, Small and Medium Enterprises Development Act, 2006: The Act of the Parliament of India to provide for the facilitation and promotion and development of micro, small and medium enterprises and for matters connected therewith or incidental thereto. Notification S.O. 2119(E), dated June 26, 2020: The original notification that is being amended by this current notification, which defined the criteria for MSME classification. Advisory Committee: The committee that provided recommendations to the Central Government, which were considered before issuing this notification.
Official Source Record View Original Source →
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-21032025-261838 CG-DxLx-xEG-I2D1H0x3x2x0 25-261838 xxxGIDExxx असाधारण EXTRAORDINARY भाग II—खण् ड 3—उप-खण्ड (ii) PART II—Section 3—Sub-section (ii) प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 1346] नई दिल्ली, िुक्रिार, माच च21, 2025/फाल्ग नु 30, 1946 No. 1346] NEW DELHI, FRIDAY, MARCH 21, 2025/PHALGUNA 30, 1946 सक्ष्ू म, लघ ुऔर मध्यम उद्यम मत्रं ालय अजधसचू ना नई दिल्ली, 21 माच,च 2025 का.आ. 1364(अ).— केंद्रीय सरकार, सूक्ष्म, लघु और मध्यम उद्यम जिकास अजधजनयम, 2006 (2006 का 27) की धारा 7 की उपधारा (9) के साथ पठित उपधारा (1) और धारा 8 की उपधारा (3) के साथ पठित उपधारा (2) द्वारा प्रित्त िजियों का प्रयोग करत े हुए, ि इस जनजमत सलाहकार सजमजत की जसफाठरिें प्राप्त करन े के पश्चात, भारत सरकार, सूक्ष्म, लघु और मध्यम उद्यम मंत्रालय की तारीख 26 िून, 2020 की अजधसूचना संख्या का.आ. 2119 (अ), िो भारत के रािपत्र, असाधारण, भाग- II, खंड 3, उपखंड (ii), तारीख 26 िून, 2020 में प्रकाजित हुई थी, में जनम्नजलजखत संिोधन करती है, अथाचत:- 1. उि अजधसूचना के परै ा 1 म,ें - (i) खंड (i) म,ें- (क) "एक करोड़" िब्िों के स्ट्थान पर "िो करोड़ पचास लाख" िब्ि रखे िाएंगे; (ख) “पांच करोड़” िब्िों के स्ट्थान पर “िस करोड़” िब्ि रख ेिाएंगे; (ii) खडं (ii) म,ें- (क) “िस करोड़” िब्िों के स्ट्थान पर “पच्चीस करोड़” िब्ि रख ेिाएगं े; (ख) “पचास करोड़” िब्िों के स्ट्थान पर “एक सौ करोड़” िब्ि रख ेिाएंगे; 1993 GI/2025 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)] (iii) खंड (iii) म,ें- (क) “पचास करोड़” िब्िों के स्ट्थान पर “एक सौ पच्चीस करोड़” िब्ि रख ेिाएंगे; (ख) “िो सौ पचास करोड़” िब्िों के स्ट्थान पर “पांच सौ करोड़” िब्ि रख ेिाएंगे; 2. यह अजधसूचना 1 अप्रलै , 2025 से प्रिृत होगी। [फा. स.ं पी-11/3/2023-नीजत-डीसीएमएसएमई] डॉ. रिनीि, अपर सजचि एिं जिकास आयुि नोट: मलू अजधसूचना भारत के रािपत्र, असाधारण, भाग- II, खंड 3, उपखंड (ii) म ें संख्या का.आ. 2119 (अ), तारीख 26 िून, 2020 द्वारा प्रकाजित की गई थी। MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES NOTIFICATION New Delhi, the 21st March, 2025 S.O. 1364(E).—In exercise of the powers conferred by sub-section (1) read with sub-section (9) of section 7 and sub-section (2) read with sub-section (3) of section 8 of the ‘Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006)', the Central Government after obtaining the recommendations of the Advisory Committee in this behalf hereby makes the following amendments in the notification of Government of India, Ministry of Micro, Small and Medium Enterprises number S.O. 2119 (E), dated the 26th June, 2020, published in the Gazette of India, Extraordinary, Part-II, Section 3, sub-section (ii), dated the 26th June, 2020, namely:- 1. In the said notification in paragraph 1,– (i) in clause (i),- (a) for the words “one crore”, the words “ two crore and fifty lakh” shall be substituted; (b) for the words “five crore”, the words” ten crore” shall be substituted; (ii) in clause (ii),- (a) for the words “ten crore”, the words “twenty five crore” shall be substituted; (b) for the words “fifty crore”, the words “one hundred crore” shall be substituted; (iii) in clause (iii),- (a) for the words “fifty crore”, the words “one hundred twenty five crore”, shall be substituted; (b) for the words “two hundred and fifty crore”, the words “five hundred crore” shall be substituted; 2. This notification shall come into force with effect from the 1st day of April, 2025. [F. No. P-11/3/2023-POLICY-DCMSME] Dr. RAJNEESH, Addl. Secy. & Development Commissioner Note: The principal notification was published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii), vide number S.O. 2119(E), dated the 26th June, 2020. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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