MSME limits from 1 April 2025
The Ministry of MSME raised the limits for every category in notification S.O. 1364(E) dated 21 March 2025. It amends the original 2020 definition in S.O. 2119(E), and the new limits apply from 1 April 2025. Investment limits went up 2.5 times and turnover limits doubled.
| Category | Investment (from 1 April 2025) | Turnover (from 1 April 2025) | Old limits (2020 to March 2025) |
|---|
| Micro | Up to ₹2.5 crore | Up to ₹10 crore | ₹1 crore investment, ₹5 crore turnover |
| Small | Up to ₹25 crore | Up to ₹100 crore | ₹10 crore investment, ₹50 crore turnover |
| Medium | Up to ₹125 crore | Up to ₹500 crore | ₹50 crore investment, ₹250 crore turnover |
The same limits apply to manufacturing and service enterprises. The old split between manufacturing and services ended in 2020.
How MSME classification works
- Both tests apply. To be micro, you must be within the micro limit for investment and for turnover. If one figure is in the small range, you are a small enterprise.
- Investment means plant, machinery and equipment only. It is the written-down value from your income tax return. Land, building, furniture and fittings are not counted. Certain items such as pollution control, research and development, and industrial safety devices can also be left out.
- Exports are not counted in turnover. Only domestic turnover is used, so an export-heavy unit can have high sales and still be micro or small.
- Figures come from your PAN. The Udyam portal takes investment and turnover from ITR and GST data linked to your PAN. All GSTINs under one PAN count as one enterprise.
- Moving up and down. Crossing either limit moves you up to the next category. You move down only when both figures fall below the limit. A unit that moves up keeps the non-tax benefits of its earlier category for three years.
For a longer explanation with examples, read our guide to the classification of micro, small and medium enterprises.
Benefits by MSME category
Many of the strongest MSME benefits apply only to micro and small enterprises. This is the most common surprise for businesses that move up to medium.
| Benefit | Micro | Small | Medium |
|---|
| Payment within 45 days and interest on late payment (MSMED Act, Sections 15 and 16) | Yes | Yes | No |
| Buyer's tax deduction tied to paying you (Income-tax Act, Section 43B(h)) | Yes | Yes | No |
| Delayed payment cases on MSME Samadhaan | Yes | Yes | No |
| 25% public procurement quota and EMD exemption | Yes | Yes | No |
| Collateral-free credit guarantee (CGTMSE) | Yes | Yes | No |
| Priority sector lending | Yes | Yes | Yes |
| Invoice discounting on TReDS | Yes | Yes | Yes |
| MSME Ministry schemes such as ZED certification | Highest subsidy | Yes | Lower subsidy |
See our full guide to the benefits of MSME registration, and how the 45-day payment rule works.
Official sources
This is a free guide by a private consultancy, and it is not affiliated with the Government of India. Your official category is the one on your Udyam certificate.
Frequently Asked Questions
What are the MSME limits from 1 April 2025?
Micro: investment up to ₹2.5 crore and turnover up to ₹10 crore. Small: investment up to ₹25 crore and turnover up to ₹100 crore. Medium: investment up to ₹125 crore and turnover up to ₹500 crore. These limits were notified in S.O. 1364(E) dated 21 March 2025.
Do I need to meet both the investment and the turnover limit?
Yes. An enterprise must be within both limits for a category. If it is within the micro limit on one test but the small limit on the other, it is a small enterprise.
What counts as investment for MSME classification?
Only investment in plant, machinery or equipment, taken at written-down value as per your income tax return. Land, building, furniture and fittings are left out. A new enterprise with no ITR yet can declare the purchase value of its plant and machinery, excluding GST.
Is export turnover counted?
No. Exports of goods or services are left out of turnover for MSME classification. That is why this checker asks for export turnover separately and subtracts it.
My Udyam certificate shows the old category. What should I do?
The Udyam portal updates categories from ITR and GST data linked to your PAN. If your certificate still shows a category based on the old 2020 limits, you can
update your Udyam Registration so the new limits are applied.
What happens if my business grows beyond its category?
Crossing either limit moves you up to the next category. Moving down needs both figures to fall below the limit. Under the MSME Ministry's rules, a unit that moves up keeps the non-tax benefits of its earlier category for three years.
Can traders get MSME classification?
Retail and wholesale traders can register on the Udyam portal, but only to get priority sector lending from banks. Other MSME benefits are generally aimed at manufacturing and service enterprises.
Is this checker official?
No. It is a free guide built on the official notifications. Your official category is the one shown on your Udyam certificate, which the portal works out from your ITR and GST data.