{"id":7853,"date":"2021-07-22T17:14:09","date_gmt":"2021-07-22T11:44:09","guid":{"rendered":"https:\/\/www.niir.org\/blog\/?p=7853"},"modified":"2026-03-10T17:46:15","modified_gmt":"2026-03-10T12:16:15","slug":"msme-definition-revised-what-is-new-msme-what-is-the-difference-between-the-old-and-new-msme-definitions","status":"publish","type":"post","link":"https:\/\/www.niir.org\/blog\/msme-definition-revised-what-is-new-msme-what-is-the-difference-between-the-old-and-new-msme-definitions\/","title":{"rendered":"MSME Definition Revised: What is New MSME? What is the Difference between the Old and New MSME Definitions?"},"content":{"rendered":"<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone wp-image-7857\" src=\"https:\/\/www.niir.org\/blog\/wp-content\/uploads\/2021\/07\/MSME.png\" alt=\"\" width=\"594\" height=\"396\" \/><\/p>\n<p>&nbsp;<\/p>\n<p><strong>MSME New Definition: <\/strong>The new MSME definition has been accepted by the Union Cabinet. MSMEs have been reclassified based on the amount of money they may invest and the magnitude of their revenue. Medium Units will now be classified as businesses with a capital investment of up to Rs 50 crore and a revenue of up to Rs 250 crore. Finance Minister Nirmala Sitharaman has already proposed a number of economic initiatives as part of the Rs 20 lakh crore Atmanirbhar Bharat Abhiyaan, which aims to rebuild India&#8217;s economy in the wake of the COVID-19 pandemic. The package includes radical business reforms, with a particular focus on the Micro, Small, and Medium Enterprises (MSME) sector. Learn about the several initiatives announced to help the MSME sector, including a new definition and greater investment limits.<\/p>\n<p>There are a total of 6 changes to revitalise the MSME sector, according to the PDF file issued by the government on Atmanirbhar Bharat Abhiyaan. These are the following:<\/p>\n<ul>\n<li>Rs 3 lakh crores Collateral free Automatic Loans<\/li>\n<li>Rs 20,000 crore Subordinate Debt for MSMEs<\/li>\n<li>Rs 50,000 crore equity infusion through MSME Fund of Funds<\/li>\n<li>New Definition of MSMEs<\/li>\n<li>Global tender to be disallowed up to Rs 200 crores<\/li>\n<li>Other interventions for MSMEs<\/li>\n<\/ul>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>New Definition of MSME<\/strong><\/p>\n<p>MSMEs have been concerned that if they exceed the threshold limitations, they will be forced to close their doors. They will no longer be eligible for the benefits they have been receiving. Fear has stifled their desire to expand in terms of size and turnover. Taking this into account, the FM rewrote the MSME definition in their favour. The government has taken the following steps to redefine the MSME:<\/p>\n<p>&#8211; Increased Investment Limit<\/p>\n<p>&#8211; Introduced additional criteria of turnover<\/p>\n<p>&#8211; Eliminated difference between Manufacturing &amp; Service sector<\/p>\n<p>&#8211; Amendments to law will be made<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>Take a look at the new MSME definition:<\/strong><\/p>\n<ul>\n<li>Micro Units: Companies with Investments up to Rs 1 crore &amp; Turnover of below Rs 5 crore.<\/li>\n<li>Small Units: Companies with Investment of up to Rs 10 crore &amp; Turnover of below 50 crore<\/li>\n<li>Medium Units: Companies with Investment of up to Rs 50 crore &amp; Turnover of below Rs 250 crore (Revised)<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><strong>The Following are The Differences between Old and New MSME:<\/strong><\/p>\n<p><img decoding=\"async\" class=\"alignnone size-medium wp-image-7856\" src=\"https:\/\/www.niir.org\/blog\/wp-content\/uploads\/2021\/07\/msme-1-300x169.jpg\" alt=\"\" width=\"300\" height=\"169\" srcset=\"https:\/\/www.niir.org\/blog\/wp-content\/uploads\/2021\/07\/msme-1-300x169.jpg 300w, https:\/\/www.niir.org\/blog\/wp-content\/uploads\/2021\/07\/msme-1-1024x576.jpg 1024w, https:\/\/www.niir.org\/blog\/wp-content\/uploads\/2021\/07\/msme-1-768x432.jpg 768w, https:\/\/www.niir.org\/blog\/wp-content\/uploads\/2021\/07\/msme-1-750x422.jpg 750w, https:\/\/www.niir.org\/blog\/wp-content\/uploads\/2021\/07\/msme-1-1140x641.jpg 1140w, https:\/\/www.niir.org\/blog\/wp-content\/uploads\/2021\/07\/msme-1.jpg 1280w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"&nbsp; MSME New Definition: The new MSME definition has been accepted by the Union Cabinet. MSMEs have been&hellip;","protected":false},"author":1,"featured_media":8781,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":32,"csco_display_header_overlay":false,"csco_singular_sidebar":"","csco_page_header_type":"","footnotes":""},"categories":[17376],"tags":[832,837,865,1530,1813,2017,2820,3579,3656,5083,5087,5095,9420],"industry":[12335],"class_list":["post-7853","post","type-post","status-publish","format-standard","has-post-thumbnail","category-msme-small-scale-industries","tag-businessconsultant","tag-businessestostart","tag-businessplan","tag-detailedprojectreport","tag-entrepreneurindia","tag-feasibilityreport","tag-industrialproject","tag-msmedefinitionrevised","tag-newmsmedefinition","tag-startupbusiness","tag-startupbusinessideas","tag-startupideas","tag-npcs","industry-information","cs-entry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>MSME Definition Revised: What is New MSME?<\/title>\n<meta name=\"description\" content=\"The new MSME definition has been accepted by the Union Cabinet. MSMEs have been reclassified based on the amount of money they may invest and the magnitude of their revenue. Medium Units will now be classified as businesses with a capital investment of up to Rs 50 crore and a revenue of up to Rs 250 crore.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.niir.org\/blog\/msme-definition-revised-what-is-new-msme-what-is-the-difference-between-the-old-and-new-msme-definitions\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"MSME Definition Revised: What is New MSME?\" \/>\n<meta property=\"og:description\" content=\"The new MSME definition has been accepted by the Union Cabinet. MSMEs have been reclassified based on the amount of money they may invest and the magnitude of their revenue. Medium Units will now be classified as businesses with a capital investment of up to Rs 50 crore and a revenue of up to Rs 250 crore.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.niir.org\/blog\/msme-definition-revised-what-is-new-msme-what-is-the-difference-between-the-old-and-new-msme-definitions\/\" \/>\n<meta property=\"og:site_name\" content=\"Niir Project Consultancy Services\" \/>\n<meta property=\"article:published_time\" content=\"2021-07-22T11:44:09+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-03-10T12:16:15+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.niir.org\/blog\/wp-content\/uploads\/2021\/07\/MSME-1.png\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"360\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"MSME Definition Revised: What is New MSME?","description":"The new MSME definition has been accepted by the Union Cabinet. MSMEs have been reclassified based on the amount of money they may invest and the magnitude of their revenue. Medium Units will now be classified as businesses with a capital investment of up to Rs 50 crore and a revenue of up to Rs 250 crore.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.niir.org\/blog\/msme-definition-revised-what-is-new-msme-what-is-the-difference-between-the-old-and-new-msme-definitions\/","og_locale":"en_US","og_type":"article","og_title":"MSME Definition Revised: What is New MSME?","og_description":"The new MSME definition has been accepted by the Union Cabinet. MSMEs have been reclassified based on the amount of money they may invest and the magnitude of their revenue. Medium Units will now be classified as businesses with a capital investment of up to Rs 50 crore and a revenue of up to Rs 250 crore.","og_url":"https:\/\/www.niir.org\/blog\/msme-definition-revised-what-is-new-msme-what-is-the-difference-between-the-old-and-new-msme-definitions\/","og_site_name":"Niir Project Consultancy Services","article_published_time":"2021-07-22T11:44:09+00:00","article_modified_time":"2026-03-10T12:16:15+00:00","og_image":[{"width":800,"height":360,"url":"https:\/\/www.niir.org\/blog\/wp-content\/uploads\/2021\/07\/MSME-1.png","type":"image\/png"}],"author":"admin","twitter_card":"summary_large_image","twitter_misc":{"Written by":"admin","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.niir.org\/blog\/msme-definition-revised-what-is-new-msme-what-is-the-difference-between-the-old-and-new-msme-definitions\/#article","isPartOf":{"@id":"https:\/\/www.niir.org\/blog\/msme-definition-revised-what-is-new-msme-what-is-the-difference-between-the-old-and-new-msme-definitions\/"},"author":{"name":"admin","@id":"\/#\/schema\/person\/174335af9f8da22f7c18ced0abb311de"},"headline":"MSME Definition Revised: What is New MSME? 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