MSME classification limits from 1 April 2025: investment and turnover tests

Last updated 25 Oct 2026 · India

Short answer. From 1 April 2025, the Ministry of MSME revised the classification limits. An enterprise is micro if investment in plant and machinery or equipment is up to ₹2.5 crore and turnover up to ₹10 crore; small up to ₹25 crore and ₹100 crore; medium up to ₹125 crore and ₹500 crore. Both tests must be met; crossing either one moves you up. Export turnover is excluded from turnover for classification. Udyam picks up the figures from your income tax and GST data, and registration on the official portal is free.

Why it matters

The delayed-payment protection (payment within 45 days, MSEFC reference) under the MSMED Act is for micro and small suppliers only.
Buyers check your Udyam category before deciding payment terms.

Step by step

Take investment in plant and machinery or equipment as per the previous year's income tax return.
Take turnover excluding exports.
Compare both with the table above; the higher category wins if either limit is crossed.
Log in to udyamregistration.gov.in and check that the certificate shows the right category after your ITR and GST returns are filed.

Common mistakes

Using the pre-2025 limits (₹1 cr / ₹10 cr / ₹50 cr investment).
Including export turnover.
Paying an agent for Udyam registration; the government portal is free.

Frequently asked questions

What are the MSME limits from 1 April 2025?

Micro: investment up to ₹2.5 crore and turnover up to ₹10 crore. Small: up to ₹25 crore and ₹100 crore. Medium: up to ₹125 crore and ₹500 crore.

Is export turnover counted?

No. Exports are excluded from turnover when classifying an enterprise.

Is Udyam registration free?

Yes. Registration on the official Udyam portal has no fee.

Official sources

Not tax or legal advice. This is a free explainer of public rules; deadlines and rules can change by notification, so confirm on the official portal or with your CA before you file. Last checked 25 Oct 2026.

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