Which of the following is the new criteria for becoming a small enterprise in the definition of the Ministry of Micro, Small & Medium Enterprises (MSMEs) that was announced in Union Budget 2025-26?​

Correct option is B

The correct answer is (b) Turnover less than ₹100 crore.

• In the Union Budget 2025-26, the Government of India revised the classification criteria for Micro, Small, and Medium Enterprises (MSMEs) to foster growth and scalability.

• For small enterprises, the revised criteria are:

  • Investment: Up to ₹25 crore

  • Turnover: Up to ₹100 crore

• This revision allows small enterprises to scale operations without immediately losing MSME benefits, encouraging technological upgrades and increased competitiveness.

Information Booster:

• Micro Enterprises: Investment up to ₹2.5 crore and turnover up to ₹10 crore.

• Medium Enterprises: Investment up to ₹125 crore and turnover up to ₹500 crore.

• Credit Guarantee: The credit guarantee cover for micro and small enterprises has been enhanced from ₹5 crore to ₹10 crore, facilitating easier access to credit.

• Credit Cards for Micro Enterprises: A new customized credit card scheme will provide ₹5 lakh in credit to micro enterprises registered on the Udyam portal, with 10 lakh cards set to be issued in the first year.

• Support for First-Time Entrepreneurs: A new scheme will provide term loans up to ₹2 crore over five years for 5 lakh first-time women, Scheduled Castes, and Scheduled Tribes entrepreneurs.

Additional Information:

• The revised MSME classification is effective from April 1, 2025, and applies uniformly to both manufacturing and service enterprises.

• The introduction of turnover as a criterion, alongside investment, provides a more comprehensive assessment of an enterprise's scale and capacity.