Guide
MSME classification: micro, small, medium or large by investment and turnover
In India, whether a business counts as micro, small or medium decides what support it can get: priority-sector lending from banks, protection under the MSMED Act for late payments from buyers, and various scheme eligibilities. The class used to depend only on investment; since 2020 it depends on investment and turnover together. This page applies both tests and shows how much room you have before the next class.
How the test works
The page asks for investment in plant and machinery or equipment, and turnover, both in crore rupees. It goes through micro, then small, then medium, and stops at the first category in which both numbers are within the limits. If none fits, the result is “Large (not an MSME)”. Because both conditions must hold, a business with a tiny investment but a large turnover is classed by its turnover.
The two sets of limits
A selector lets you choose which limits to apply. From 1 April 2025 the limits are: micro up to 2.5 crore investment and 10 crore turnover, small up to 25 and 100, and medium up to 125 and 500. The earlier set, in force from 1 July 2020 to 31 March 2025, was micro 1 and 5, small 10 and 50, and medium 50 and 250. The table under the result shows whichever set you chose. The notes mention that the 2025 Budget revised the limits.
A worked example
The default is a manufacturer with 8 crore of investment and 40 crore of turnover, tested under the current limits. It does not fit micro, because 8 is above 2.5, but it fits small. The page shows “Small” and the room before the next class: 17 crore of investment and 60 crore of turnover. A micro-unit sample, with 1.2 crore of investment and 6 crore of turnover, returns “Micro”. The same 8 and 40 under the earlier limits is also “Small”, but the room shrinks to 2 crore of investment and 10 crore of turnover, which shows how the 2025 change gave businesses more headroom.
Medium and large
For a medium enterprise the “room” line shows how far you are from leaving the MSME bracket altogether, not from another class. If investment goes above 125 crore or turnover above 500 crore, the result is Large. Growth can therefore push a business out of the benefits that depend on MSME status, which is worth planning for.
Edge cases
Zero values are accepted and classify as micro. A negative value is rejected. Decimals are displayed without trailing zeros, so 2.50 appears as 2.5. If investment is micro and turnover is large, the result follows the turnover. The page does not ask about exports, so subtract them from turnover yourself before you enter it.
Limits
The result is a self-check, not a certificate. Udyam registration calculates the class from your filed returns and the Ministry’s rules, which determine the figures that count as investment and turnover for your business. Rules for how to treat related enterprises under one owner, and for the transition period when a class changes, are outside the page. Check the Ministry of MSME website for the latest notification.
Related tools
- GST Interest Calculator prices a late GST payment for a business of any size.
- 44AD Tax Calculator applies presumptive taxation, which depends on turnover.
- Profit Margin Calculator turns turnover and cost into the margin lenders ask about.
- Debt Payoff Calculator plans how fast a business or personal loan can be cleared.
Checked against the current version of the MSME Classification Checker on .

