Investment and Turnover limits for classification of all MSMEs 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 Investment Limit | Changes in Turnover Limit |
Micro Enterprises | Rs 1 crore to Rs 2.5 crore | Rs 5 crore to Rs 10 crore |
Small Enterprises | Rs 10 crore to Rs 25 crore | Rs 50 crore to Rs 100 crore |
Medium Enterprises | Rs 50 crore to Rs 125 crore | Rs 250 crore to Rs 500 crore |
Other Initiatives announced in Budget for MSME sector
- Credit guarantee cover for micro and small enterprises enhanced from 5 crore to 10 crore.
- 10 lakh customized credit cards with 5 lakh limit for micro enterprises registered on Udyam portal to be introduced.
- Export Promotion Mission to facilitate easy access to export credit and support MSMEs to tackle non-tariff measures in overseas markets.
- New fund of funds of Rs. 10,000 crore to be set up for start-ups.
Significance of MSMEs for Indian Economy
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