The Ministry of Micro, Small & Medium Enterprises on Wednesday said that from July 1, 2020, Micro, Small & Medium Enterprises (MSMEs) across the country will be classified on the basis of the new criteria approved by the government. The revision in MSME definition was announced in the Atma Nirbhar Bharat package on May 13, 2020, by Finance Minister Nirmala Sitharaman.
Besides, a manufacturing and services unit with Rs 1 crore of investment and Rs 5 crore of turnover will be classified as ‘micro’ whereas a unit involving Rs 10 crore of investment and Rs 50 crore of turnover will be categorized as a ‘small’ enterprise.
As per the revised criteria, a unit with Rs. 50 crore of investment and Rs. 250 crore of turnover will fall under the ‘medium’ enterprise category.
A new composite formula of classification for manufacturing and service units has been notified. Now, there will be no difference between the manufacturing and service sectors. Also, a new criterion for turnover is added.