The investment and turnover limits for MSME classification have been increased by 2.5 times and 2 times, respectively. As per Budget 2025, MSMEs with investments up to ₹2.5 crore will be classified as microenterprises, up from the previous limit of ₹1 crore. The investment limit for small and medium enterprises has been hiked to ₹25 crore and ₹125 crore, respectively.