Union Cabinet clears new definition of MSMEs, Turnover limit for Medium Enterprises increased to Rs.250 Cr
New Delhi: The union government has further increased the definition of Medium Enterprises to Rs. 50 crore of investment and Rs. 250 crore of turnover. The union cabinet chaired by the Prime Minister Narendra Modi has approved the upward revision of MSMEs on Monday.
The government has also decided that the turnover with respect to exports will not be counted in the limits of turnover for any category of MSME units whether micro, small or medium.
The Finance Ministry during its announcement on Atmanirbhar Bharat package had revised the definitions of MSMEs. While the definition of micro-manufacturing and services unit was increased to Rs. 1 crore of investment and Rs. 5 crore of turnover. The limit of small unit was increased to Rs. 10 crore of investment and Rs 50 crore of turnover. Similarly, the limit of a medium unit was increased to Rs 20 crore of investment and Rs. 100 crore of turnover.
However, there were several representations that the announced revision is still not in tune with market and pricing conditions and it should be further revised upwards.