As per the MSME Development Act, 2006, and its 2020 revision, the classification of MSMEs is based on investment in plant & machinery or equipment and annual turnover:
| Type | Investment Limit | Turnover Limit |
| Micro | Up to ₹1 crore | Up to ₹5 crore |
| Small | Up to ₹10 crore | Up to ₹50 crore |
| Medium | Up to ₹50 crore | Up to ₹250 crore |
