The Union Cabinet on Monday said it has approved and further revised the definition of MSMEs in the country, given the go ahead to setting up the Rs 20,000 crore subordinate debt for stressed MSMEs and setting up of the Rs 10,000 crore fund of funds. Accordingly a business will now be classified as ‘micro’ units if they have investments upto Rs 1 crore and turnover of less than Rs 5 crore. For an MSME to be defined as a ‘small’ unit, its investment limit has been raised from Rs 5 crore to Rs 10 crore with a turnover of less than Rs 50 crore. Whereas enterprises with investments up to Rs 20 crore with a turnover of less than Rs 250 crore will now be defined as ‘medium’ units. All differences between manufacturing and services in terms of definition has been eliminated.

The Union Cabinet on Monday said it has approved and further revised the definition of MSMEs in the country, given the go ahead to setting up the Rs 20,000 crore subordinate debt for stressed MSMEs and setting up of the Rs 10,000 crore fund of funds. Accordingly a business will now be classified as ‘micro’ units if they have investments upto Rs 1 crore and turnover of less than Rs 5 crore. For an MSME to be defined as a ‘small’ unit, its investment limit has been raised from Rs 5 crore to Rs 10 crore with a turnover of less than Rs 50 crore. Whereas enterprises with investments up to Rs 20 crore with a turnover of less than Rs 250 crore will now be defined as ‘medium’ units. All differences between manufacturing and services in terms of definition has been eliminated.