New MSME Limits 2025: Micro, Small, Medium Investment Turnover

From 1 April 2025, India raised the MSME size limits. Micro now means investment up to Rs 2.5 crore and turnover up to Rs 10 crore. Small means up to Rs 25 crore and Rs 100 crore. Medium means up to Rs 125 crore and Rs 500 crore. These limits come from Ministry of MSME Notification S.O. 1364 E dated 21 March 2025, which replaced the old 2020 limits.

Short on time? Read the comparison table below to find your category, then check the worked example to confirm where your firm now sits.

An enterprise is graded as Micro, Small or Medium on two numbers: investment in plant, machinery or equipment, and annual turnover. The Government raised the ceilings so that growing firms keep their MSME tag for longer.

Under the new rule, investment limits rose 2.5 times and turnover limits rose 2 times for every category. Many firms were losing benefits the moment they grew slightly past the old caps. Higher ceilings let them keep priority lending, the 45-day payment protection, and procurement preference while they scale.

The change is legal and notified, not just a Budget promise. It took effect from 1 April 2025 and applies to fresh Udyam registrations and to existing ones at re-classification.

All figures are in Indian Rupees. An enterprise must stay within BOTH the investment and the turnover ceiling for its category.

The old limits came from Notification S.O. 2119 E dated 26 June 2020. The new limits come from S.O. 1364 E dated 21 March 2025, effective 1 April 2025.

Both numbers count together. This is the composite criterion.

1. If an enterprise crosses the ceiling on EITHER investment OR turnover, it moves UP to the next higher category.
2. To move DOWN to a lower category, it must fall below the ceiling on BOTH investment AND turnover.

So one high number can push you up, but you need both numbers low to come back down. This stops firms from gaming a single figure.

Take a firm with Rs 20 crore investment and Rs 90 crore turnover.

• Both numbers are inside the new Small ceilings of Rs 25 crore investment and Rs 100 crore turnover.
• So this firm is now Small, not Medium.

Under the old 2020 limits the same firm crossed the Small turnover cap of Rs 50 crore, so it sat as Medium. The higher 2025 ceilings pulled it back to Small. That is the practical effect of the revision: many Medium firms are now Small, and many Small firms are now Micro.

Your category is calculated automatically from the figures linked to your PAN and GSTIN. You do not file a separate application to re-grade. Still, check your record is correct.

1. Visit the official portal at udyamregistration.gov.in. Registration and updates are free. Avoid imposter sites that charge a fee.
2. Log in with your Udyam Registration Number and the OTP sent to your linked mobile.
3. Check that your latest ITR and GST turnover are reflected. The portal pulls these figures from income-tax and GST data.
4. File your annual ITR and GST returns on time. Each year's re-classification is based on these filings.
5. If your figures are correct but your category looks wrong, raise a grievance on the portal.

Your category for a financial year is fixed for that year. A change in turnover or investment updates your grade from the next eligibility cycle, not instantly. For a full walkthrough, see how to register Udyam MSME.

Your MSME grade decides real money and protection. Micro and Small suppliers get the Section 43B h 45-day payment rule, priority and collateral-free lending, public procurement preference, and delayed-payment relief through MSME Samadhaan. Because the higher 2025 limits keep more firms inside Micro and Small, more firms now keep these protections.

For your wider rights and how to use public information law, see The RTI Playbook.

• Find your investment and turnover figures from your latest ITR and GST returns.
• Match them against the new 2025 table above to fix your correct category.
• Log in to udyamregistration.gov.in and confirm your record shows the right grade.
• If a buyer owes a Micro or Small firm money beyond 45 days, note the date. You may have a Samadhaan claim.

From 1 April 2025, Micro means investment up to Rs 2.5 crore and turnover up to Rs 10 crore. Small means up to Rs 25 crore investment and Rs 100 crore turnover. Medium means up to Rs 125 crore investment and Rs 500 crore turnover. These come from Notification S.O. 1364 E dated 21 March 2025.

The new limits came into force on 1 April 2025. They were notified by the Ministry of MSME through S.O. 1364 E dated 21 March 2025. This notification superseded the earlier S.O. 2119 E dated 26 June 2020, which set the limits used from 1 July 2020 to 31 March 2025.

Yes. This is the composite criterion. If you cross either the investment or the turnover ceiling, you move up to the next category. To move down, you must fall below both ceilings. So a single high number can raise your category, but you need both numbers low to be re-graded lower.

No. You do not file a fresh application to re-grade. The portal recalculates your category each year from your PAN-linked income-tax and GST data. Just file your ITR and GST returns on time. Log in to udyamregistration.gov.in to check your record is correct and raise a grievance if it is wrong.

Often, yes. Because the ceilings rose 2.5 times for investment and 2 times for turnover, many firms now fit a lower grade. A firm that was Medium can become Small, and a Small firm can become Micro, if both its numbers fall within the new lower ceilings. Check your figures against the 2025 table.

The notification is S.O. 1364 E dated 21 March 2025, issued by the Ministry of MSME and published in the Gazette of India. It was announced through PIB press release PRID 2098389. The official classification portal is udyamregistration.gov.in.

• Ministry of MSME, Notification S.O. 1364 E dated 21 March 2025 (effective 1 April 2025), superseding S.O. 2119 E dated 26 June 2020.
• Press Information Bureau, PRID 2098389: investment and turnover limits enhanced to 2.5 and 2 times respectively.
• Udyam Registration portal: udyamregistration.gov.in.

• How to register Udyam MSME: complete guide
• Section 43B h: pay MSMEs in 45 days or lose the deduction

This guide was reviewed by Dr. Shrawan Kumar Pathak. Last reviewed June 2026.