Union Ministry of Micro, Small and Medium Enterprises, MSME has issued Gazette notification to pave the way for implementation of the upward revision in the definition and criteria of MSMEs in the country. The new definition and criterion will come into effect from 1st July, 2020.
 
After 14 years since the MSME Development Act came into existence in 2006, a revision in MSME definition was announced in the Atmnirbhar Bharat package last month. As per this announcement, the definition of Micro manufacturing and services units was increased to one crore rupees of investment and five crore rupees  of turnover. 
 
The  Minstry in a statement said, in case of small unit, the limit  was increased to 10 crore rupees of investment and  50 crore rupees of turnover. Similarly, the limit of Medium Unit was also increased to 20 crore  rupees of investment and  100 crore rupees  of turnover. For medium Enterprises, now  the limit will be  50 crore rupees of investment and  250 crore rupees of turnover.
 
The Ministry said, as part of new definition, Exports will not be counted in turnover for any enterprises whether micro, small or medium.