Udyam Registration Eligibility and Classification: The 2025 Limits
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Effective 1 April 2025 (Ministry of MSME Notification S.O. 1364(E), dated 21 March 2025), the classification thresholds are: Micro — up to ₹2.5 crore investment / up to ₹10 crore turnover. Small — up to ₹25 crore investment / up to ₹100 crore turnover. Medium — up to ₹125 crore investment / up to ₹500 crore turnover. This notification supersedes the 2020 notification (S.O. 2119(E)) — do not use the older 2020 figures for a current classification decision.
Which MSME category you fall into — Micro, Small, or Medium — decides which tender set-asides, lending schemes, and rebates apply to you. Getting the current thresholds right matters, because a lot of pages still online show the 2020 figures without flagging that they were revised in the 2025 Union Budget.
The Current (2025) Thresholds
| Category | Investment (plant/machinery/equipment) | Turnover |
|---|---|---|
| Micro | up to ₹2.5 crore | up to ₹10 crore |
| Small | up to ₹25 crore | up to ₹100 crore |
| Medium | up to ₹125 crore | up to ₹500 crore |
These limits took effect 1 April 2025 via Notification S.O. 1364(E) dated 21 March 2025 — a 2.5x increase in the investment ceiling and a 2x increase in the turnover ceiling versus the prior 2020 figures, announced in the Union Budget 2025.
The Superseded 2020 Figures — Historical Reference Only
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Legal basis
Udyam Classification Notification S.O. 1364(E), 2025 (CURRENT) — supersedes S.O. 2119(E), 2020
FLAGSHIP: the Ministry of MSME notification effective 1 April 2025 raised classification thresholds by 2.5x (investment) and 2x (turnover), superseding the 2020 notification — the single biggest stale-content risk in this topic (many sites still quote the 2020 figures uncorrected).
Micro / Small / Medium enterprise classification — definition (current, 2025)
The three-tier MSME classification, defined by a composite investment-AND-turnover test under the current (1 April 2025) notification.
Udyam classification thresholds (2025) — mechanics founders need to know
The composite investment+turnover test, the asymmetric upgrade/downgrade rule, the export-turnover exclusion, and the auto-fetch mechanism that removes self-reporting from classification.
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