Finance Minister Nirmala Sitharaman today announced that the central government has decided to change the definition of MSMEs (Micro, Small and Medium Enterprises).
| Existing MSME classification | |||
| Criteria: Investment in Plant and Machinery or Equipment | |||
| Classification | Micro | Small | Medium |
| Manufacturing Enterprises | Investment less than Rs. 25 lakh | Investment less than Rs. 5 Crores | Investment less than Rs. 10 Crores |
| Services Enterprises | Investment less than Rs. 10 lakh | Investment less than Rs. 2 Crores | Investment less than Rs. 5 Crores |
Revised MSME classification
| Revised MSME classification | |||
| Composite Criteria: Investment and Annual Turnover | |||
| Classification | Micro | Small | Medium |
| Manufacturing & Service Enterprises | Investment less than Rs. 1 Crore and Turnover less than Rs 5 Crores | Investment less than Rs. 10 Crores and Turnover less than Rs 50 Crores | Investment less than Rs. 20 Crores and Turnover less than Rs 100 Crores |