• CCI AD FROM 5th April 2021

Ministry of MSME gears up to implement the New Norms of classification of MSMEs

Circular No. ES/182/2020-21                                                         5th June, 2020         


To: Members of the Council    


 Sub: Ministry of MSME gears up to implement the New Norms of classification of MSMEs


Dear Member,


The Ministry of Micro, Small & Medium Enterprises has issued a Press Release dated 3rd June, 2020 notifying the New Norms of classification of MSMEs.


Key Highlights of the New Norms of classification of MSMEs –




The Press Release features the following –



  • Union Ministry of MSME has issued Gazette Notification for notifying criteria for classification of micro, small and medium enterprises.

  • The new definition and criterion will come into effect from 1st July, 2020.

  • A revision in MSME definition was announced in the Atmanirbhar Bharat package on 13th May, 2020 which is as follows –


a) The definition of Micro manufacturing and services units was increased to Rs. 1 Crore of investment and Rs. 5 Crore of turnover.

b)The limit of the small unit was increased to Rs. 10 Crore of investment and Rs 50 Crore of turnover.

c)Similarly, the limit of the medium unit was increased to Rs. 20 Crore of investment and Rs. 100 Crore of turnover.


  • ​​The Government of India on 01.06.2020 decided for further upward revision of the MSME Definition.

a) For medium Enterprises, now it will be Rs. 50 Crore of investment and Rs. 250 Crore of turnover.



  • It has been decided to further increase the limit for medium Units. This has been done in order to be realistic with time and to establish an objective system of classification and to provide ease of doing business. 

  • A new composite formula of classification for manufacturing and service units has been notified. Now, there will be no difference between manufacturing and service sectors. Also, a new criterion of turnover is added 

  • The provision of excluding the exports from counting of turnover will encourage the MSMEs to export more and more without fearing to loose the benefits of a MSME unit.

  • Champions Portal


a) Ministry of MSME has reiterated that it has put in place a very strong handholding mechanism for MSMEs and new entrepreneurs in the name of Champions (www.champions.gov.in).

b)The Portal was recently launched by the Prime Minister.

c)Interested Enterprises/People can take benefit of this mechanism and can also put their queries or complaints.

Members may kindly make a note of the above.

Thanking you,


Yours faithfully,