Notification issued for New MSME definition from 1st April 2025 [Read Notification]

The Central Government has notified the New MSME definition that will take effect from 1st April 2025. It is notified through issuing a notification.

It was proposed in the Union Budget 2025 presented by the Finance Minister on 1st Feb 2025. FM Nirmala Sitharaman unveiled new MSME classification criteria in an effort to bring more businesses into the MSME sector.

In order to help the MSME sector in reaching greater scale efficiencies, technological innovation, and improved capital access, all MSMEs’ investment and turnover limits will be raised to 2.5 and 2 times, respectively. This was done to offer MSME entrepreneurs the confidence to grow and create jobs for our youth.

Revision in Classification Criteria for MSMEs

The Notification Read as Follows:

In exercise of the powers conferred by sub-section (1) read with sub-section (9) of section 7 and sub-section (2) read with sub-section (3) of section 8 of the ‘Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006)’, the Central Government after obtaining the recommendations of the Advisory Committee in this behalf, hereby makes the following amendments in the notification of Government of India, Ministry of Micro, Small and Medium Enterprises number S.O. 2119 (E), dated the 26th June, 2020, published in the Gazette of India, Extraordinary, Part-II, Section 3, sub-section (ii), dated the 26th June, 2020, namely:

In the said notification in paragraph 1,-

(i) in clause (i).-

(a) for the words “one crore,” the words “two crore and fifty lakh” shall be substituted;

(b) for the words “five crore,” the words “ten crore” shall be substituted:

(ii) in clause (ii),-

(a) for the words “ten crore,” the words “twenty-five crore” shall be substituted;

(b) for the words “fifty crore,” the words “one hundred crore” shall be substituted;

(iii) in clause (iii),

(a) for the words “fifty crore,” the words “one hundred twenty-five crore” shall be substituted;

(b) for the words “two hundred and fifty crore,” the words “five hundred crore” shall be substituted;

This notification shall come into force with effect from the 1st day of April 2025.

For Official Notification Download PDF Given Below: