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Under the MSME thresholds effective 1 April 2025, how is an enterprise with qualifying investment of ₹55 crore and qualifying annual turnover of ₹300 crore classified?

Question and options

Under the MSME thresholds effective 1 April 2025, how is an enterprise with qualifying investment of ₹55 crore and qualifying annual turnover of ₹300 crore classified?

  1. Outside the MSME classification

  2. Micro enterprise

  3. Medium enterprise

  4. Small enterprise

Answer and explanation

Correct answer: C - Medium enterprise

Under the classification in force from 1 April 2025, a small enterprise may have investment up to ₹25 crore and turnover up to ₹100 crore, while a medium enterprise may have up to ₹125 crore and ₹500 crore. ₹55 crore of investment and ₹300 crore of turnover exceed the small limits but fall within both medium limits, so the enterprise is medium.

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