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New MSME classification criteria announced in Union Budget 2025-26

 Investment and Turnover limits for the classification of all MSMEs are to be enhanced to 2.5 and 2 times, respectively.

 

This will help MSMEs to achieve higher efficiencies of scale, technological upgradation, and better access to capital.

Revision in classification criteria for MSMEs

Types of Enterprises

Changes in Turnover Limit

Changes in Investment Limit

 

 

 

Micro Enterprises

Rs 5 crore to Rs 10 crore

Rs 1 crore to Rs 2.5 crore

 

 

 

Small Enterprises

Rs 50 crore to Rs 100 crore

Rs 10 crore to Rs 25 crore

 

 

 

Medium Enterprises

Rs 250 crore to Rs 500 crore

Rs 50 crore to Rs 125 crore

 

 

 

Other Initiatives announced in Budget for MSME sector

 Ø Credit guarantee cover for micro and small enterprises enhanced from 5 crore to 10 crore.

Ø 10 lakh customized credit cards with 5 lakh limit for micro enterprises registered on Udyam portal to be introduced.

Ø Export Promotion Mission to facilitate easy access to export credit and support MSMEs to tackle non-tariff measures in overseas markets.

Ø New fund of funds of Rs. 10,000 crore to be set up for start-ups.

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