According to the Union Budget 2025-26, the turnover threshold for Micro…

Concept: In India an enterprise is classified as micro, small or medium by a composite criterion: its investment in plant, machinery or equipment and its annual turnover must both stay within the ceiling fixed for that category. Crossing either ceiling pushes the unit into the next higher category, so the ceilings are revised periodically to keep growing firms from losing MSME benefits merely by expanding.

Application: The Union Budget 2025-26, presented on 1 February 2025, revised these ceilings: investment limits were raised to 2.5 times and turnover limits to 2 times their existing values. So the micro-enterprise turnover ceiling is obtained by doubling the ceiling then in force.

1. Micro-enterprise limits before the revision: investment up to ₹1 crore and annual turnover up to ₹5 crore.

2. Turnover limits raised to 2 times: ₹5 crore × 2 = ₹10 crore.

3. Investment limits raised to 2.5 times: ₹1 crore × 2.5 = ₹2.5 crore.

4. Revised micro-enterprise definition: investment up to ₹2.5 crore and annual turnover up to ₹10 crore.

Cross-check: Applying the same two multipliers to the other categories reproduces the full revised classification, which confirms the arithmetic:

Result: Therefore the turnover threshold for micro enterprises has been increased to ₹10 crore. The revised limits were notified through Gazette Notification S.O. 1364(E) dated 21 March 2025 and apply from 1 April 2025.