Morung Express News
Dimapur | February 1
Terming Micro, Small, and Medium Enterprises (MSMEs)—which encompass both manufacturing and services—as the second engine of growth, the Union Budget 2025-26 has revised the investment and turnover limits for MSME classification by 2.5 times and 2 times, respectively.
This revision aims to enhance economies of scale, promote technological advancement, and improve access to capital, Union Finance Minister Nirmala Sitharaman stated while presenting the Budget on February 1.
Under the revised criteria, the investment limit for Micro Enterprises has been increased from `1 crore to `2.5 crore, while the turnover limit has been raised from `5 crore to `10 crore.
For Small Enterprises, the investment threshold has been enhanced from `10 crore to `25 crore, and the turnover limit has been revised from `50 crore to `100 crore.
A Medium Enterprise can now have an investment of up to `125 crore (previously `50 crore), while the turnover limit has been reclassified from `250 crore to `500 crore.
According to the finance minister, there are currently over one crore registered MSMEs in India, employing 7.5 crore people and contributing 36% to the country’s manufacturing output—reinforcing India's position as a global manufacturing hub.
Further, MSMEs account for 45% of India's exports, thanks to their high-quality products, she noted.
The enhancement of investment and turnover limits is expected to instil confidence among MSMEs, enabling them to expand further and create more employment opportunities for the youth, Sitharaman added.
