MSME Notification Amendment: New Rules Effective April 2025

Introduction to the MSME Notification Amendment: New Rules Effective April 2025

The Ministry of Micro, Small, and Medium Enterprises (MSME) has issued an amendment to its earlier notification dated 26th June 2020, revising the investment and turnover limits for the classification of Micro, Small, and Medium Enterprises.

This amendment has been notified through a Gazette notification dated 21st March 2025 and has been issued after due consultation with the Advisory Committee under the MSME Development Act, 2006.

The revised limits are intended to reflect the changing scale of businesses and provide greater operational flexibility to enterprises across sectors.

Key Amendments of the QCO You Should Know

As per the amended notification, changes have been introduced in clause (i), clause (ii), and clause (iii) of the earlier MSME notification:

1. Amendments in Clause (i)

   1. The earlier investment limit of one crore has been revised to two crore and fifty lakh
   2. The earlier turnover limit of five crore has been increased to ten crore

2. Amendments in Clause (ii)

   1. The earlier investment limit of ten crore has been substituted with twenty-five crore
   2. The earlier turnover limit of fifty crore has been revised to one hundred crore

3. Amendments in Clause (iii)

   1. The earlier investment limit of fifty crore has been increased to one hundred twenty-five crore
   2. The earlier turnover limit of two hundred and fifty crore has been revised to five hundred crore

These revised thresholds significantly expand the eligibility range for enterprises seeking MSME classification.

What is the Date of Implementation?

The amended MSME notification shall come into force with effect from 1st April 2025.

From this date onwards, the revised investment and turnover limits will be applicable for classification and registration under the MSME framework.

Now, What Should You Do?

Enterprises should:

• Review their current investment and turnover figures
• Assess eligibility under the revised MSME limits
• Update Udyam registration details, if required
• Plan future expansions while retaining MSME benefits

Timely review and alignment with the updated criteria will help businesses continue to avail government incentives, schemes, and regulatory benefits.

Brand Liaison supports businesses in understanding and implementing MSME regulatory changes, including impact analysis of revised thresholds, Udyam registration support, documentation assistance, and regulatory advisory. With over 10 years of experience in compliance and government notifications, Brand Liaison helps enterprises transition smoothly under the new MSME rules effective from April 2025.