The revised investment and turnover criteria for micro, small and medium enterprises, effective from Tuesday this week, is expected to offer greater opportunities for growth and expansion, resulting in increased job creation, according to experts.

The government has notified significant revisions to the turnover and investment criteria for classifying MSMEs, which will come into effect from April 1.

Under the revised criteria, the investment and turnover limits for classification of all MSMEs will be enhanced to 2.5 and 2 times, respectively.

“The revised and increased eligibility should enable those MSMEs who have had good growth to grow further by

giving them increased headroom to continue to grow. It should be especially beneficial for new micro enterprises as they can scale up with the various fiscal incentives available, especially with regard to access to finance,” Ashok Saigal, Co-Chairman of CII National MSME Council, said. He further said the growth of MSMEs is expected to boost employment creation.

Micro, small and medium enterprises (MSMEs) with investments up to Rs 2.5 crore will now be classified as micro enterprises, from the previous threshold of Rs 1 crore. The turnover limit has been revised from Rs 5 crore to Rs 10 crore.

Units with investments up to Rs 25 crore will be classified as small enterprises, from the earlier Rs 10 crore. The turnover limit for such enterprises has been doubled from Rs 50 crore to Rs 100 crore. MSMEs with investments up to Rs 125 crore will now be classified as medium enterprises, from the earlier limit of Rs 50 crore. For medium enterprises, the turnover limit has been doubled to Rs 500 crore