How do the changes in MSME classification help businesses grow?

The revised MSME classification allows businesses to expand without losing critical benefits. Previously, companies had to remain small to maintain access to government subsidies, tax perks, and low-interest loans. Now, with significantly increased investment thresholds (2.5 crores for micro, 25 crores for small, and 125 crores for medium enterprises) and higher turnover limits, businesses can scale up substantially while still qualifying as MSMEs. This change essentially removes the growth ceiling that forced businesses to artificially limit their expansion. The government's message is clear: 'Don't hold back. Grow as much as you want and we would still have your back.' This represents a transformative shift toward enabling small businesses to become bigger, stronger, and more profitable while continuing to enjoy MSME benefits.