Revamped MSME Criteria to Spark Growth and Job Creation

The revised investment and turnover criteria for micro, small and medium enterprises (MSMEs), effective from this week, aim to foster growth and expansion. By increasing thresholds for classification, the new regulations provide opportunities for enhanced job creation and access to finance, particularly benefiting emerging micro enterprises.

The government has introduced significant revisions to the investment and turnover criteria for micro, small, and medium enterprises (MSMEs), aiming to stimulate growth and job creation. Effective from April 1, the updated guidelines are expected to provide substantial headroom for MSMEs to expand.

The revised criteria increase the investment and turnover limits for MSMEs, presenting them with greater opportunities for technological upgrades and capital access. Specifically, micro enterprises will see investment thresholds rise to Rs 2.5 crore, while their turnover is capped at Rs 10 crore. For small enterprises, the limits are set at Rs 25 crore in investments and Rs 100 crore for turnover.

Medium enterprises will benefit from increased thresholds of up to Rs 125 crore in investments and Rs 500 crore in turnover. These changes, as articulated by Union Finance Minister Nirmala Sitharaman, are aimed at enhancing efficiencies of scale and boosting employment among the youth.

(With inputs from agencies.)