The micro, small and medium enterprises (MSMEs) were earlier defined on the basis of investments put in, and now after the FM's yesterday's announcement the revised definitions will also include turnover of the company.

After the amendment now there will be no more distinction between Manufacturing and Service MSMEs.

Micro units will have investments upto Rs. 1 crore and turnover of less than Rs. 5 crore.

Earlier micro units had investment criteria of up to Rs. 10 lakh for Service MSMEs and Rs. 25 lakh or manufacturing.

The investment limit for small units has been raised from Rs. 5 crore to Rs. 10 crore with a turnover of less than 50 crore. This applies to all MSMEs including the Service enterprises which earlier came under investment of up to Rs. 2 crore.

Medium Enterprises will have an investment of up to Rs. 20 crore with a turnover of less than Rs. 100 crore.

Earlier, the investment limit for Medium units was up to Rs. 10 crore and Service enterprises up to Rs. 5 crore.