Below is the new classification of MSMEs as per the Union Budget 2025. Which of the rows is/are correct?
| Enterprise category | Investment limit | Turnover limit |
|---|---|---|
| a. Micro | ₹2.5 crore | ₹10 crore |
| b. Small | ₹25 crore | ₹100 crore |
| c. Medium | ₹250 crore | ₹500 crore |
- Aa and c
- Ba and b
- Ca, b and c
- Db and c
Show answer and explanation
Correct answer: (b) a and b
Explanation
The Union Budget 2025-26 raised the limits for classifying MSMEs (from 1 April 2025):
| Category | Investment limit | Turnover limit |
|---|---|---|
| Micro | ₹2.5 crore (was ₹1 crore) | ₹10 crore (was ₹5 crore) |
| Small | ₹25 crore (was ₹10 crore) | ₹100 crore (was ₹50 crore) |
| Medium | ₹125 crore (was ₹50 crore) | ₹500 crore (was ₹250 crore) |
Rows a and b are correct. Row c is wrong: a medium enterprise's investment limit is ₹125 crore, not ₹250 crore.