Question

    As per the changes announced in the Union Budget

    2025-26, under the MSMED Act, 2006 , to be classified as a small enterprise, it can invest up to _________ in plant and machinery or equipment .  
    A Rs.25 crore Correct Answer Incorrect Answer
    B Rs.30 crore Correct Answer Incorrect Answer
    C Rs.35 crore Correct Answer Incorrect Answer
    D Rs.40 crore Correct Answer Incorrect Answer
    E Rs.50 crore Correct Answer Incorrect Answer

    Solution

    The definition of micro, small and medium enterprises , under as per MSMED Act 2006 will be amended, as announced in the Union Budget 2025-26 by increasing the investment and turnover limits for classification by  2.5 times and 2 times , respectively. This is expected to improve efficiency, technological adoption, and employment generation.  

    • A micro enterprise is an enterprise where the investment in plant and machinery or equipment does not exceed ₹ 2.5 crore (enhanced from ₹1 crore ) , and turnover does not exceed ₹ 10 crore (enhanced from ₹5 crore ) ;   
    • A small enterprise is an enterprise where the investment in plant and machinery or equipment does not exceed ₹ 25 crore (enhanced from ₹10 crore ) , and turnover does not exceed ₹ 100 crore (enhanced from ₹50 crore ) ; and  
    • A medium enterprise is an enterprise where the investment in plant and machinery or equipment does not exceed ₹ 125 crore (enhanced from ₹50 crore, and turnover does not exceed ₹ 500 crore (enhanced from ₹250 crore )  

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