Revised definition of MSME:
30th May, 2020
Centre has revised the definition of micro, small and medium enterprises to give them the confidence to grow.
- Centre has revised the definition of micro, small and medium enterprises to give them the confidence to grow.
- Under the new definition of MSMEs
- the distinction between manufacturing and services enterprises has been eliminated.
- the investment criteria for such enterprises have been revised upwards, while an additional criterion of turnover has been introduced.
- manufacturing and services enterprises with investments up to Rs 1 crore and turnover up to Rs 5 crore will be classified as micro enterprises.
- For small enterprises, the investment criteria has been revised upwards to Rs 10 crore, with the turnover criteria of Rs 50 crore added to the mix.
- Enterprises with investment up to Rs 20 crore and turnover up to Rs 100 crore will be termed medium enterprises.