Classification as Micro, Small, or Medium is a composite test: both investment in plant and machinery/equipment AND turnover must be within the category's limits, per s.7 of the Micro, Small and Medium Enterprises Development (MSMED) Act 2006 and the Udyam Registration rules. If either crosses into the next band, the classification moves up. This tool applies the test with the post-April 2025 revised thresholds (Micro: investment up to ₹2.5 crore and turnover up to ₹10 crore; Small: ₹25 crore/₹100 crore; Medium: ₹125 crore/₹500 crore).

Yes — export turnover is excluded from the turnover figure used for MSME classification, so an exporter can stay within a lower band on its domestic business. The checker subtracts your export turnover from gross turnover before applying the composite test.

The revised thresholds roughly doubled the limits in each category: Micro went from ₹1 crore investment/₹5 crore turnover to ₹2.5 crore/₹10 crore, Small from ₹10 crore/₹50 crore to ₹25 crore/₹100 crore, and Medium from ₹50 crore/₹250 crore to ₹125 crore/₹500 crore. The tool compares old vs new so you can see whether your business moved bands. VERIFY: confirm the current Udyam portal rules before relying on the exact figures.

MSME status unlocks Udyam registration benefits, priority-sector lending under RBI norms, delayed-payment protection under s.15–24 of the MSMED Act 2006 (interest at three times the bank rate on delayed payments beyond 45 days), and eligibility for government procurement set-asides and schemes. Classification also drives mandatory MSME Form I reporting of outstanding dues by companies.

Udyam registration is a free, self-declared online process on the Udyam portal (udyamregistration.gov.in), replacing the old UAM/MSME registration, under the Udyam Registration rules framed under the MSMED Act 2006. Aadhaar and PAN details are required, and a Udyam Registration Number is issued on completion.