Module: General Practice
Q1: As per the revised classification criteria announced in the Union Budget 2025 (effective April 1, 2025), which of the following correctly defines a "Small Enterprise" in the MSME sector?
✅ Correct Answer: B
In the Union Budget 2025, the government revised the MSME classification limits to boost the sector.
The new limits for a Small Enterprise are an Investment in Plant and Machinery or Equipment not exceeding Rupees 25 crore and Annual Turnover not exceeding Rupees 100 crore.
The complete revised structure is as follows: Micro Enterprises have an Investment limit up to Rupees 2.5 Crore and Turnover up to Rupees 10 Crore.
Small Enterprises have an Investment limit up to Rupees 25 Crore and Turnover up to Rupees 100 Crore.
Medium Enterprises have an Investment limit up to Rupees 125 Crore and Turnover up to Rupees 500 Crore.
Prior to this 2025 revision, the limits were significantly lower (based on the 2020 Atmanirbhar Bharat package), but they were enhanced to allow MSMEs to scale up their operations without losing their priority status and benefits.
The new limits for a Small Enterprise are an Investment in Plant and Machinery or Equipment not exceeding Rupees 25 crore and Annual Turnover not exceeding Rupees 100 crore.
The complete revised structure is as follows: Micro Enterprises have an Investment limit up to Rupees 2.5 Crore and Turnover up to Rupees 10 Crore.
Small Enterprises have an Investment limit up to Rupees 25 Crore and Turnover up to Rupees 100 Crore.
Medium Enterprises have an Investment limit up to Rupees 125 Crore and Turnover up to Rupees 500 Crore.
Prior to this 2025 revision, the limits were significantly lower (based on the 2020 Atmanirbhar Bharat package), but they were enhanced to allow MSMEs to scale up their operations without losing their priority status and benefits.