MSMED Act, 2006
Classification Framework and the 2020 Revision
The MSMED Act, 2006 created the first statutory definition of micro, small, and medium enterprises in India, initially classifying them separately for manufacturing and services on the basis of investment in plant and machinery/equipment alone. In 2020, under the Atmanirbhar Bharat package, the government revised the definition to a composite criterion combining both investment and annual turnover, and removed the manufacturing–services distinction, effective 1 July 2020.
- Original 2006 Act: separate investment-only thresholds for manufacturing and service enterprises
- 2020 revision (effective 1 July 2020): composite investment + turnover criteria — Micro: investment up to ₹1 crore and turnover up to ₹5 crore; Small: investment up to ₹10 crore and turnover up to ₹50 crore; Medium: investment up to ₹50 crore and turnover up to ₹250 crore
- The 2026 Amendment further empowers the central government to notify these classification thresholds administratively rather than fixing them rigidly in the statute, allowing periodic revision without a fresh parliamentary amendment
- Udyam Registration Portal (effective 1 July 2020) is the unified online registration system linked to these definitions
● Tracked since May 12, 2026 · last seen August 07, 2026 · updates as the daily brief publishes
07 Aug '26
MSME Development (Amendment) Bill, 2026: Mandatory TReDS and Faster Dispute Resolution
Economics
03 Aug '26
Rajya Sabha Passes MSME Development (Amendment) Bill, 2026 to Curb Payment Delays
Economics
03 Aug '26
MSME Amendment Bill 2026 Passed: Mandating TReDS Routing and Faster Payment Recovery
Economics
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