Reclassification of MSME Explained: Big Boost for MSMEs

The government’s new definition and reclassification of MSMEs are set to transform small and medium businesses in India. While presenting the Union Budget 2025-26 in Parliament today, the Union Minister for Finance & Corporate Affairs, Smt. Nirmala Sitharaman said “To help MSMEs achieve higher efficiencies of scale, technological upgradation and better access to capital, the investment and turnover limits for classification of all MSMEs will be enhanced to 2.5 and 2 times respectively.

In this video, we explain the key changes, how these reforms will benefit entrepreneurs, and what it means for the future of MSMEs. Learn how these updates can help you scale your business and unlock new opportunities.