NEW CRITERIA FOR MSME CLASSIFICATION

Ministry of Micro, Small and Medium Enterprises [MSME] has vide Notification dated 1st June, 2020 revised definition of MSME.

Earlier, the criteria for manufacturing units and service units were different. Now those distinctions between Manufacturing and Service MSMEs are being removed. They will all be defined similarly.

Criteria for classification of micro, small and medium enterprises, namely:— 

• A micro enterprise is defined as one where the investment in Plant and Machinery or Equipment does not exceed one crore rupees and turnover does not exceed five crore rupees; 
• A small enterprise is defined as one where the investment in Plant and Machinery or Equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees; and
• A medium enterprise, where the investment in Plant and Machinery or Equipment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees. 

Please find attached notification or can be referred at:  https://pib.gov.in/PressReleasePage.aspx?PRID=1628345

Notification: MSME definition Gazette Notification