Union Government notified revised turnover and investment criteria for classifying Micro, Small and Medium Enterprises (MSMEs) | Current Affairs | Vision IAS
News Today Logo

Union Government notified revised turnover and investment criteria for classifying Micro, Small and Medium Enterprises (MSMEs)

Posted 25 Mar 2025

2 min read

The revised criteria for classifying MSMEs, earlier announced during the Union Budget 2025-26, will take effect from April 1, 2025.

New Criteria for classification 

An infographic highlighting revised criteria for MSME classification

Significance of MSMEs

  • Employment Generation: With 5.93 crore registered MSMEs employing more than 25 crore people.
  • Economic Output: MSME-related products accounted for 45.73% of India’s total exports in 2023-24.
  • Contribution to GDP: MSMEs' Gross Value Added (GVA) increased from 27.3% (2020-21) to 30.1% (2022-23).
  • Other: Help in industrialization of rural & backward areas, thereby, reducing regional imbalances, assuring more equitable distribution of national income and wealth.

Challenges to MSMEs 

Infrastructure bottlenecks; Issues with formalisation; Inertia to technology adoption; Limited backward and forward linkages; Lack of access to credit and risk capital; Delayed payments etc.

Initiatives for MSMEs

  • Udyam Registration Portal: Platform for facilitating registration of enterprises.
  • PM Vishwakarma: To provide comprehensive support to artisans and craftspeople, improving their socio-economic status and quality of life.
  • Prime Minister’s Employment Generation Programme (PMEGP): Credit linked subsidy scheme for providing employment opportunities through establishment of micro-enterprises in the non-farm sector.
  • Scheme of Fund for Regeneration of Traditional Industries (SFURTI): To organize traditional artisans into collectives or clusters.
  • Tags :
  • MSME
  • MSME Criteria
Watch News Today
Subscribe for Premium Features