Ease of Doing Business for MSMEs: With the revised definition, combining manufacturing and service MSMEs to enjoy the same benefits, investment less than Rs 1 crore and turnover under Rs 5 crore will be defined as micro-units.
Ease of Doing Business for MSMEs: Finance Minister Nirmala Sitharaman on Wednesday revised the MSME definition from investment in plant and machinery or equipment based to a mix of investment and turnover. Manufacturing enterprises investing less than Rs 25 lakh, less than Rs 5 crore, and less than Rs 10 crore in plant and machinery or equipment were till now defined as micro, small and medium enterprises respectively. For services businesses, the investment threshold limit stood at less than Rs 10 lakh, less than Rs 2 crore and less than Rs 5 crore as micro, small and medium enterprises respectively.
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Now, with the revised definition, combining manufacturing and service MSMEs to enjoy the same benefits, investment less than Rs 1 crore and turnover under Rs 5 crore will be defined as micro-units while small businesses will be categorized based on investment less than Rs 10 crore and turnover under Rs 50 crore. Medium enterprises will be defined on the basis of investment under Rs 20 crore and turnover less than Rs 100 crore.
Source: Financial Express
