Centre revises classification criteria for MSMEs to boost growth and access to capital in Budget 2025

MSMEs

In an attempt to fuel the growth of Micro, Small, and Medium Enterprises (MSMEs) in India, Finance Minister Nirmala Sitharaman, in her Union Budget 2025 speech, announced a raise in the investment limit for MSMEs by 2.5 times and the turnover limit by 2 times.

This would provide MSMEs with more opportunities to scale operations, improve competitiveness, and enter new markets, according to FM's speech.

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.

"With their quality products, these MSMEs are responsible for 45 per cent of our exports. To help them achieve higher efficiencies of scale, technological upgradation and better access to capital, the investment and turnover limits are revised," she said.

"This will give them the confidence to grow and generate employment for our youth," she added.