The Union Budget 2025-26 defines MSMEs as one of the powerful engines for the story of development and the proposed development measures supports MSMEs to accelerate growth and secure inclusive development.
To help MSMEs achieve higher efficiencies of scale, technological upgradation and better access to capital, the investment and turnover limits for classification of all MSMEs will be enhanced to 2.5 and 2 times respectively.
Investment criteria: The revised investment criteria would be Rs 2.5 crore from current Rs 1 crore for micro enterprises, Rs 25 crore from current Rs 10 crore for small enterprises, and Rs 125 crore from current Rs 50 crore for medium enterprises.
Turnover criteria: The revised turnover criteria would be Rs 10 crore from current Rs 5 crore for micro enterprises, Rs 100 crore from current Rs 50 crore for small enterprises and Rs 500 crore from current Rs 250 crore for medium enterprises.
MSME contribution: Currently, over 1 crore registered MSMEs, employing 7.5 crore people, and generating 36 per cent of our manufacturing, have come together to position India as a global manufacturing hub. With their quality products, these MSMEs are responsible for 45 per cent of our exports.
| Rs. in Crore | Investment | Turnover | ||
| Current | Revised | Current | Revised | |
| Micro Enterprises | 1 | 2.5 | 5 | 10 |
| Small Enterprises | 10 | 25 | 50 | 100 |
| Medium Enterprises | 50 | 125 | 250 | 500 |
