India Revises Definition of MSMEs, Impacting EPR Obligations Exemption 
On March 21, 2025, India’s Ministry of Micro, Small, and Medium Enterprises (MSME) announced revisions to the definition of MSMEs, effective April 1, 2025. The updated criteria significantly increase the thresholds for investment and turnover, thereby expanding the number of enterprises classified as MSMEs. MSMEs benefit from government-provided incentives, including financial aid, tax relief, and various technical supports. Additionally, under India’s Extended Producer Responsibility (EPR) regulations of different wastes, MSMEs enjoy partial exemptions from certain obligations. After the revision which saw investment and turnover thresholds more than doubled, more companies are expected to be included under MSME.
Revised MSME Classification Threshold
| Category | Investment (≤INR) | Turnover (≤INR) | ||
|---|---|---|---|---|
| Before | After | Before | After | |
| Micro | 10 million | 25 million | 50 million | 100 million |
| Small | 100 million | 250 million | 500 million | 1 billion |
| Medium | 500 million | 1.25 billion | 2.5 billion | 5 billion |
Exemptions Under Specific EPR Regulations
Two EPR regulations currently provide exemptions for MSMEs:
- Plastic Waste Management Rules, 2016: MSMEs producers and brand owners are exempted from obligations related to recycling, reuse, and use of recycled materials.
- E-Waste (Management) Rules, 2022: Micro enterprises will not be considered as obligated entities under this regulation.
Download the notification from link below:
Notification: Revision of Definition of MSMEs
https://egazette.gov.in/writeReadData/2025/261838.pdf
