The
Government of India revised the definition of MSMEs (Micro, Small and Medium
Enterprises) in 2020 to promote the growth and development of small businesses
in the country. The new definition of MSMEs is based on two criteria -
investment in plant and machinery or equipment, and annual turnover of the
enterprise.
Here
is the new definition of MSMEs:
Micro Enterprises:
A micro enterprise is defined as an enterprise where the
investment in plant and machinery or equipment does not exceed one crore rupees
and annual turnover does not exceed five crore rupees.
Small Enterprises:
A small enterprise is defined as an enterprise where the
investment in plant and machinery or equipment is more than one crore rupees
but does not exceed ten crore rupees and annual turnover does not exceed fifty
crore rupees.
Medium Enterprises:
A medium enterprise is defined as an enterprise where the
investment in plant and machinery or equipment is more than ten crore rupees
but does not exceed fifty crore rupees and annual turnover does not exceed two
hundred and fifty crore rupees.
The
new definition is expected to help more businesses avail benefits under various
government schemes and increase the competitiveness of Indian MSMEs. The
revised definition also provides more flexibility and opportunities for
businesses to grow and expand.
