So, you want to know the new definition of MSME? And also want to know the MSME new classification. My friend, you are in the right place.
In this article, I will provide you the detailed knowledge of old and new classification of MSME.
And after reading this, you have no requirement to visit any other website to know it further.
So, let’s start the discussion.
During the period of COVID-19, MSME sectors are suffering a lot. All the production is stopped. No sell. No Marketing. And the main problem arises at the time of paying salary/wages to Clarks/workers.
In order to provide relief to the MSME sectors, Govt has announced several packages in the recent past. For this purpose, Govt has changed the classification of the MSME.
Note: Only the Manufacturing and/or the Service sectors can be categorized as MSME.
New Classification of MSME
Earlier, the classification of MSME was based on the amount of investment in plant & machinery/equipment. However, at present, the classification criteria have been changed.
Here is the New Classification of MSME:
Investment in Plant and Machinery and/or Equipment < Rs. 1 Crore and Turnover < Rs. 5 Crore.
Investment in Plant & Machinery and/or Equipment < Rs. 10 Crore and Turnover < Rs. 50 Crore.
Investment in Plant & Machinery and/or Equipment < Rs. 20 Crore and Turnover < Rs. 100 Crore.
Old Classification of MSME
As I told you before, earlier the classification was made on the basis of the amount of investment in plant and machinery and/or equipment.
But, the investment amount was different for manufacturing sectors and service sectors.
Micro: Investment < Rs 25 Lacs.
Small: Investment amount is more than Rs. 25 lacs but less than Rs. 5 Crore.
Medium: The amount of investment is more than Rs. 5 Crore but less than Rs. 10 Crore.
Micro: Investment < Rs 10 Lacs.
Small: The investment amount is more than Rs. 10 lacs but less than Rs. 2 Crore.
Medium: The amount of investment is more than Rs. 2 Crore but less than Rs. 5 Crore.
In this video, I have explain the new classification of MSME in an easy and simple manner. It is in Hindi. Watch it.
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