Revised MSME Definition Effective From April 1, 2025: Ministry

New Delhi, Oct 24 (KNN) The Ministry of Micro, Small and Medium Enterprises (MSME) has addressed confusion regarding the effective date for determining the graduation of MSMEs under the updated criteria. 

It clarified that the revised MSME definition, notified on 21 March 2025, is deemed effective from 1 April 2025.

In a circular issued on 24th October 2025, the Ministry stated: “In view of the notification S.O. 1364(E) dated 21.03.2025, the enhanced limit of investment and turnover shall come into force with effect from 01.04.2025 for all purposes.” 

Effective from 1 April 2025, the revised enterprise definition raises investment and turnover thresholds for micro, small, and medium enterprises. 

For micro enterprises, the investment limit has increased from Rs 1 crore to Rs 2.5 crore, and the turnover limit from Rs 5 crore to Rs 10 crore. 

Small enterprises now have an investment ceiling of Rs 50 crore, up from Rs 10 crore, and a turnover limit of Rs 100 crore, compared with the previous Rs 50 crore. 

Medium enterprises’ investment limit has been raised from Rs 50 crore to Rs 125 crore, while the turnover threshold has increased from Rs 250 crore to Rs 500 crore.

This revision is intended to expand the scope of MSMEs, enabling more enterprises to access benefits, incentives, and support schemes under the government’s MSME framework.

(KNN Bureau)