MSME Definition

 

The classification of Micro, Small and Medium Enterprises is defined under the MSME Development Act 2006 amendment dated 01.06.2020. The Micro, Small and Medium Enterprises is based on the Investment in Plant , Machinery or Equipment values (excluding land and building) and Annual Turnover.This has come into effect from 01.07.2020.

Micro Enterprise: Where the investment in Plant and Machinery or Equipment does not exceed one rupees and turnover does not exceed five rupees.

Small Enterprise: Where the investment in Plant and Machinery or Equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees.

Medium Enterprises: Where the investment in Plant and Machinery or Equipment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees.

 

Revised MSME CLASSIFICATION as per MSME ACT 2006 w.e.f. 01.07.2020

Composite Criteria: investment In PLANT & MACHINERY/EQUIPMENT And ANNUAL TURNOVER

CLASSIFICATION

MICRO ENTERPRISES

SMALL ENTERPRISES

MEDIUM

ENTERPRISES

MANUFACTURING ENTERPRISES AND SERVICES  ENTERPRISES

 

Investment in Plant and Machinery or Equipment: Not more than Rs.1 Crore

&

Turnover: Not more than Rs.5 Crore

 

Investment in Plant and Machinery or Equipment: Not more than Rs.10 Crore  &

Turnover: Not more than Rs.50  Crore

 

Investment in Plant and Machinery or Equipment: Not more than Rs.50 Crore 

&

Turnover: Not more than Rs.250  Crore

 

 

New Definition of MSME, View Notification Here

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