MSME Classification 2026: Micro, Small, Medium Limits and Why They Decide Your Subsidy

An enterprise is micro if its investment in plant and machinery or equipment is up to ₹2.5 crore and its turnover up to ₹10 crore, small up to ₹25 crore and ₹100 crore, and medium up to ₹125 crore and ₹500 crore. These are the limits in force since 1 April 2025 (notification S.O. 1364(E)). The MSMED (Amendment) Act 2026 is partly in force since 15 October 2026, but no new limits had been notified under it when the gazettes were last checked. The category matters because many schemes are open only to some categories, and some pay different rates by category.

Sources checked: 29 October 2026

Facts checked on 29 October 2026 against Ministry of MSME notification S.O. 5575(E) (Gazette of India Extraordinary, 12 October 2026) and our scheme catalogue; the limits as last checked against S.O. 1364(E) on 20 October 2026; the gazette search for new limits as recorded in our schemes audit of 26 October 2026.

Key facts

Category	Investment in plant & machinery or equipment	Annual turnover
Micro	up to ₹2.5 crore	up to ₹10 crore
Small	up to ₹25 crore	up to ₹100 crore
Medium	up to ₹125 crore	up to ₹500 crore

Point	Position on 29 October 2026	Where it comes from
Limits in force	The table above, from 1 April 2025	S.O. 1364(E), 21 March 2025
MSMED (Amendment) Act 2026	Sections 2 to 7, 11, 13 to 17 in force from 15 Oct 2026; section 12 from 15 Dec 2026	S.O. 5575(E), 12 October 2026
New limits under the amended Act	None notified in the extraordinary gazettes of 12 to 26 Oct 2026	Our schemes audit, 26 Oct 2026
Registration	Udyam portal, udyamregistration.gov.in	Ministry of MSME

What are the micro, small and medium limits in 2026?

The table above. Both tests use the enterprise's own figures: investment in plant and machinery or equipment, and annual turnover. Our tools, including the eligibility checker and the subsidy calculator, treat a unit as micro only when both figures are within the micro limits; going over either one moves it to the next category, and a unit over the medium limits is treated as not an MSME. Your Udyam certificate shows the category the portal has given you.

Two examples on those rules:

• Plant and machinery of ₹2 crore with turnover of ₹12 crore: investment is within the micro limit, but turnover is above ₹10 crore, so the unit is small.
• Plant and machinery of ₹30 crore with turnover of ₹80 crore: turnover is within the small limit, but investment is above ₹25 crore, so the unit is medium.

Has the MSMED (Amendment) Act 2026 changed the limits?

Not yet. The Ministry of MSME's notification S.O. 5575(E) of 12 October 2026 appointed:

• 15 October 2026 for sections 2 to 7, section 11 and sections 13 to 17 of the MSMED (Amendment) Act 2026 (16 of 2026); and
• 15 December 2026 for section 12.

Sections 8 to 10 were not brought into force by that notification. The notification itself sets no investment or turnover limits, and our schemes audit of 26 October 2026 found no notification of new classification limits in the extraordinary gazettes from 12 to 26 October 2026. Until one is notified, the 2025 limits above apply, and our tools use them. Our government updates page lists official notifications by date.

Why does the category decide your subsidy?

Schemes are written for particular categories, so the same project can qualify for one scheme and not another just because of its size. From our scheme catalogue:

Scheme	Who it is for	How the category matters
CGTMSE	Micro and small enterprises	Collateral-free guarantee cover on loans up to ₹10 crore; medium units are outside it
MUDRA	Micro enterprises (non-corporate)	Loans up to ₹20 lakh (Tarun Plus)
Haryana Interest Subsidy 2026	Manufacturing micro and small enterprises	5% to 7% a year by area category; a medium unit does not get it
Haryana Net SGST reimbursement	Manufacturing micro and small enterprises	20% to 70% of Net SGST for seven years; not for medium units
Haryana capital investment subsidy 2026	Micro, small and medium thrust-sector manufacturers	Same rate for all three (15% to 30% by area category)
ZED certification	Manufacturing MSMEs on Udyam	Subsidy on certification cost: 80% micro, 60% small, 50% medium (100% for women-owned units)
Make in Haryana 2026	Large, mega and ultra-mega units only	An MSME must use the MSME policy instead

So a Haryana manufacturer that grows from small to medium keeps the capital investment subsidy but loses the interest subsidy and the Net SGST reimbursement under the 2026 policy, and falls outside CGTMSE for new loans. Our subsidy calculator shows this directly: for a medium unit it leaves out the interest subsidy and Net SGST lines and says why.

Across our schemes directory, more than twenty open schemes are tagged for micro and small enterprises only, and a smaller group for micro enterprises only. Check the category line on each scheme page before you plan around it.

What happens above the medium limits?

A unit over the medium limits is not an MSME, and the MSME policies stop applying to it. In Haryana it falls under the Make in Haryana Industrial Policy 2026, which is only for large, mega and ultra-mega units: a Large Project there has Fixed Capital Investment above ₹125 crore, or ₹50 crore with at least 500 direct employees. Its incentives work differently, rewarding fast commencement of production, so a unit close to the medium limits should look at both policies before it fixes the size of a project.

What should I check before I plan a project?

1. Your current category, from your Udyam certificate and your latest investment and turnover figures.
2. Your category after the project. New plant and machinery raises investment, and a larger unit raises turnover; work out where the unit will sit once the project is running.
3. The category each scheme needs, from its scheme page, and whether it is tested at application or when the claim is made. The scheme's own text decides; our expert team can read it with you.
4. Whether a size-linked scheme matters most to you. A project designed to stay within the small limits may keep interest and SGST support that a slightly larger one would lose.

For Haryana in particular, see our step-by-step guide to applying under the 2026 MSME policy and the overview of what the policy offers.

How do I get an MSME category on record?

Register on the Ministry of MSME's Udyam portal, udyamregistration.gov.in. Our Udyam registration guide walks through it step by step. Most State schemes ask for the Udyam certificate with the application; the Haryana 2026 policy's claim steps start with Udyam registration and an active GSTIN.

Getting help

Check which schemes your unit matches for its category, State and sector, or compare schemes side by side. Our expert team can work out your category before and after a project and plan the scheme mix through our subsidy and DPR service; the departments decide each claim, so we cannot promise any sanction.