To create more job opportunities in the MSME sector, the MSMEs will be defined in terms of turnovers instead of the investments put into the business. MSMEs are classified into two categories - Manufacturing enterprises, Service enterprises.
MSMEs defined according to the investments made:
|Enterprises||Investments made in the manufacturing sector||
Investments made in the service sector
|Micro enterprises||<= Rs. 25 lakhs||<= Rs. 10 lakhs|
|Small enterprises||> Rs. 25 lakhs & < Rs. 5 crores||
> Rs. 10 lakhs & < Rs. 2 crores
|Medium enterprises||> Rs. 5 crores & < Rs. 10 crores||
> Rs. 2 crores & < Rs. 5 crores
The change in definition which will be used in terms of turnovers, will enable Indian businesses to be carried out even better. The revised definition will grant a description for all things related to taxation, investments,etc.
MSMEs defined according to the turnovers for both manufacturing and service sector will be the same:
|Micro enterprises||<= Rs. 5 crores|
> Rs. 5 crores & < Rs. 75 crores
> Rs. 75 crores & < Rs. 250 crores