While unveiling the Rs. 20-lakh-crore “Atmnirbhar Bharat” stimulus package, Union Finance Minister Nirmala Sitharaman had announced a change in the definition of micro, small and medium enterprises (MSMEs). Days after changing the definition of MSMEs, the Centre has decided to further revise the criteria for medium-sized units by enhancing the investment and turnover limits. MSME minister Shri Nitin Gadkari on May 19, 2020 announced the further change in the medium enterprises.
Here are the revised and updated definitions of MSMEs
Medium Enterprises: Any firm with an investment of up to Rs. 50 crore and and turnover under Rs. 200 crore will be classified as ‘medium’.
Micro Enterprises: As per the revised definition, any firm with an investment of up to ₹1 crore and turnover under ₹5 crore will be classified as ‘micro.’
Small Enterprises: A company with an investment of up to ₹10 crore and a turnover of up to ₹50 crore will be classified as ‘small’.
