MSME Classification - Revised
| Enterprise Category |
Revised Turnover Limit (₹) |
Investment Limit (Turnover ÷ 4) |
| Micro Enterprise |
₹10 crore |
₹2.5 crore |
| Small Enterprise |
₹100 crore |
₹25 crore |
| Medium Enterprise |
₹500 crore |
₹125 crore |
💡 Memory Tip: Investment ≈ ¼ of Turnover Limit. Effective from 1st April 2025
1. A company has an investment of ₹1.5 crore and turnover of ₹8 crore. What is its MSME classification as per revised guidelines?
- A. Small Enterprise
- B. Micro Enterprise
- C. Medium Enterprise
- D. Not classified
As per revised guidelines, Micro Enterprises have investment ≤ ₹2.5 crore and turnover ≤ ₹10 crore. Hence, it is a Micro Enterprise.
2. An enterprise has an investment of ₹20 crore and turnover of ₹40 crore. What is its classification?
- A. Small Enterprise
- B. Medium Enterprise
- C. Micro Enterprise
- D. Not classified
Investment ≤ ₹25 crore and turnover ≤ ₹100 crore falls under Small Enterprise.
3. If an enterprise has ₹60 crore investment and ₹200 crore turnover, what is its MSME classification?
- A. Small Enterprise
- B. Large Enterprise
- C. Medium Enterprise
- D. Micro Enterprise
Medium Enterprises have investment ≤ ₹125 crore and turnover ≤ ₹500 crore.
4. A business with ₹3 crore investment and ₹11 crore turnover would be classified as:
- A. Small Enterprise
- B. Medium Enterprise
- C. Micro Enterprise
- D. Large Enterprise
Small Enterprises include businesses with investment ≤ ₹25 crore and turnover ≤ ₹100 crore.
5. A unit has ₹126 crore investment and ₹490 crore turnover. What is its classification?
- A. Small Enterprise
- B. Not an MSME
- C. Not classified
- D. Medium Enterprise
Investment limit exceeds ₹125 crore, so it does not qualify as Medium Enterprise under revised norms.
6. What is the maximum turnover allowed for a Micro Enterprise under the revised definition?
- A. ₹5 crore
- B. ₹25 crore
- C. ₹2.5 crore
- D. ₹10 crore
As per revised MSME norms, the turnover limit for a Micro Enterprise is ₹10 crore.
7. A firm has ₹25 crore investment and ₹105 crore turnover. Can it be classified as a Small Enterprise?
- A. Yes
- B. No
- C. It becomes Micro Enterprise
- D. It is a Medium Enterprise
Though investment is within the limit for Small Enterprise, turnover exceeds ₹100 crore. Hence, it doesn't qualify as Small Enterprise.
8. A business has an investment of ₹120 crore and turnover of ₹450 crore. Under which category does it fall as per revised MSME definition?
- A. Medium Enterprise
- B. Small Enterprise
- C. Micro Enterprise
- D. Not an MSME
Investment ≤ ₹125 crore and turnover ≤ ₹500 crore are both within Medium Enterprise limits.
9. A firm has ₹2 crore investment and ₹15 crore turnover. What is its MSME classification as per revised norms?
- A. Micro Enterprise
- B. Small Enterprise
- C. Medium Enterprise
- D. Not an MSME
Since turnover > ₹10 crore, it doesn't qualify as Micro. It fits within Small Enterprise range (≤ ₹25 crore investment, ≤ ₹100 crore turnover).
10. An enterprise with ₹0.75 crore investment and ₹4.5 crore turnover will be classified as:
- A. Medium Enterprise
- B. Small Enterprise
- C. Micro Enterprise
- D. Not an MSME
Investment ≤ ₹2.5 crore and turnover ≤ ₹10 crore — this falls under the Micro Enterprise category.
11. What is the maximum investment limit for a Medium Enterprise under revised classification?
- A. ₹250 crore
- B. ₹500 crore
- C. ₹50 crore
- D. ₹125 crore
As per revised MSME definition, the investment limit for a Medium Enterprise is up to ₹125 crore.
12. If a business exceeds turnover limit but stays within investment limit for its category, it is:
- A. Not eligible for that category
- B. Still classified under the category
- C. Can be upgraded
- D. Automatically becomes large enterprise
Both investment and turnover criteria must be satisfied to qualify under an MSME category.
