Msme definition: MSME stands for Micro

MSME stands for Micro, Small and Medium Enterprises, defined by turnover and investment criteria. Learn about the revised MSME classification, types, characteristics, and advantages of being an MSME in India. The 2025 MSME Definition fits into the narrative of growth envisioned in India, enabling ambitious enterprises to flourish while still being covered under the protective MSME umbrella. As per the new MSME definition, however, entrepreneurs can now scale confidently, access easier funding, and participate in larger markets. Home > Acts & Rules > MSME Definition The classification of Micro, Small and Medium Enterprises is defined under the MSMED Act 2006 amendment dated 01/06/2020. The Micro, Small and Medium Enterprises is based on the Investment in Plant, Machinery or Equipment values (excluding land and building) and Annual Turnover. This shall come into effect from 01.07.2020. Context: The Union Budget 2025-26 has introduced a series of measures to strengthen the Micro, Small, and Medium Enterprises (MSME) sector. Relevance of the Topic:Prelims: Definition of micro, small, and medium enterprises (MSMEs); New initiatives for MSMEs.