Module: General Practice
Q9: As per the revised MSME classification norms (effective from April 1, 2025), which of the following criteria correctly defines a "Micro Enterprise"?
Investment in Plant and Machinery or Equipment does not exceed ₹2.5 Crore.
Investment in Plant and Machinery or Equipment does not exceed ₹1 Crore.
Annual Turnover does not exceed ₹10 Crore.
Annual Turnover does not exceed ₹5 Crore.
Select the correct combination:
Investment in Plant and Machinery or Equipment does not exceed ₹1 Crore.
Annual Turnover does not exceed ₹10 Crore.
Annual Turnover does not exceed ₹5 Crore.
Select the correct combination:
✅ Correct Answer: A
CRITICAL UPDATE (2025-26): The Union Budget 2025-26 revised the MSME limits to encourage scale and combat inflation.
Old Limit (Pre-2025): Investment < ₹1 Cr / Turnover < ₹5 Cr.
New Limit (Current 2026): A Micro Enterprise is now defined as an entity where the Investment does not exceed ₹2.5 Crore AND Turnover does not exceed ₹10 Crore. (Note: Both conditions must be met concurrently).
Old Limit (Pre-2025): Investment < ₹1 Cr / Turnover < ₹5 Cr.
New Limit (Current 2026): A Micro Enterprise is now defined as an entity where the Investment does not exceed ₹2.5 Crore AND Turnover does not exceed ₹10 Crore. (Note: Both conditions must be met concurrently).