Govt raises investment, turnover limits for MSME classification-OxBig News Network

The government on Saturday announced the enhancement of investment and turnover limits for the classification of all Micro, Small and Medium Enterprises (MSMEs).

Finance Minister Nirmala Sitharaman said to help them achieve higher efficiencies of scale, technological upgradation and better access to capital, the investment and turnover limits for classification of all MSMEs will be enhanced to “2.5 and 2 times, respectively”.

This will give them the confidence to grow and generate employment for youth, the minister said.

Currently, over 1 crore registered MSMEs, employing 7.5 crore people, and generating 36 per cent of our manufacturing, have come together to position India as a global manufacturing hub.

The MSMEs are responsible for 45 per cent of the country’s exports.

As per the announcements, any firm with investment up to Rs 2.5 crore and turnover under Rs 10 crore will be classified as “micro”.

A company with investment up to Rs 25 crore and turnover up to Rs 100 crore will be classified as “small” and a firm with investment up to Rs 125 crore and turnover under Rs 500 crore will be classified as “medium”.