The Government has revised the basis for classification of micro, small and medium enterprises which shall come into effect from 01.07.2020 vide Notification No.S.O.1702(E) dated 01.06.2020. Government has also done away with separate classification for services and manufacturing sector. Further while deciding the classification, turnover will also be one of the criteria for the classification of the enterprises under the Micro, Small and Medium Enterprises Development Act, 2006.
Existing MSME criteria:
Classification | Micro | Small | Medium |
Manufacturing | Investment less than Rs.25 lakh | Investment less than Rs.5 Crore | Investment less than Rs.10 Crore |
Service | Investment less than Rs.10 lakh | Investment less than Rs.2 Crore | Investment less than Rs.5 Crore |
Proposed criteria effective from 01.07.2020
Classification | Micro | Small | Medium |
Enterprise | Investment up to Rs.1 Crore and Turnover up to Rs.5 Crore | Investment up to Rs.10 Crore and Turnover up to Rs.50 Crore | Investment up to Rs.50 Crore and Turnover up to Rs.250 Crore |
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