Understanding the Unified Composite Criteria for MSMEs
In July 2020, the Ministry of MSME eliminated the historic distinction between manufacturing and service sectors, introducing a unified composite criteria combining investment in plant and machinery with annual turnover. Crucially, export turnover is entirely excluded when calculating turnover thresholds, encouraging Indian small businesses to expand globally without losing their MSME protections.
Review the comprehensive registration process in our Udyam registration guide in Pune or connect with our MSME consultancy desk.
Statutory Threshold Matrix for MSME Classification
| Classification | Investment in Plant & Machinery | Annual Net Turnover (Excl. Exports) |
|---|---|---|
| Micro Enterprise | Not more than ₹1 Crore | Not more than ₹5 Crores |
| Small Enterprise | Not more than ₹10 Crores | Not more than ₹50 Crores |
| Medium Enterprise | Not more than ₹50 Crores | Not more than ₹250 Crores |
Need Expert Help?
Get professional compliance guidance tailored for your business in Pune.
Service Updates
Udyam Registration Criteria 2026: Composite Calculation of Plant & Machinery and Turnover in Pune
Oct 13, 2026
Udyam Registration for Service Providers vs Manufacturers in Pune: Slabs & Investment Caps
Oct 13, 2026
Updating Udyam Registration Details: Adding NIC Codes, Updating Plant Value & GST Sync Pune
Oct 13, 2026
Resolving Delayed Commercial Payments under MSMED Act Section 15: Samadhaan Portal in Pune
Oct 13, 2026