MSME Classification: Then and Now (w.e.f. 01.07.2020)

During the time of COVID-19 Pandemic, Ministry of Finance, Government of India has announced various relief measures on 13^th May 2020 to overcome the impact of Corona on Indian Economy. One of the important measure was to change the classification and definition of MSME. Now both service sector and manufacturing sector has been clubbed and a composite criteria has been released. This new criteria will come to effect from 1^st July 2020.

New Composite MSME Criteria w.e.f. 1^st July 2020

Classification	Service/ Manufacturing Sector
Micro	Investment up to ₹1.00crore and turnover under ₹5.00crore
Small	Investment up to ₹10.00crore and turnover under ₹50.00crore
Medium	Investment up to ₹20.00crore and turnover under ₹100.00crore

Old MSME Criteria

Classification	Service Sector	Manufacturing Sector
Micro	Investment in equipment upto ₹10.00lakhs	Investment in Plant & Machinery upto ₹25.00lakhs
Small	Investment in equipment more than ₹10.00lakhs and upto ₹200.00lakhs	Investment in Plant & Machinery more than ₹25.00lakhs and upto ₹500.00lakhs
Medium	Investment in equipment more than 200.00 lakhs and upto ₹500.00lakhs	Investment in Plant & Machinery more than ₹500.00lakhs and upto ₹1000.00lakhs

Reference : Ministry of MSME Website