January 1, 2026 Summary: Following the Union Budget 2025-26 announcements, the revised MSME classification limits have officially come into effect this month. Micro-enterprises now have an investment cap of ₹2.5 crore, while Small enterprises have moved to ₹25 crore. This policy shift is designed to prevent “fear of outgrowing” benefits, allowing nearly 10 million additional firms to stay within the MSME umbrella and access government subsidies.
New MSME Thresholds Effective: Government Expands Definition for Growth
