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A small packaging company has investment ₹20 Cr and turnover ₹120 Cr. What happens under the new MSME rules?

ARemains Small Enterprise

BReclassified as Medium Enterprise

CExits MSME immediately

DRemains Micro Enterprise

Answer:

B. Reclassified as Medium Enterprise

Read Explanation:

Small Enterprise limit: Investment ≤ ₹25 Cr, Turnover ≤ ₹100 Cr Turnover exceeds ₹100 Cr → reclassified as Medium Enterprise. Can still avail benefits for 3 years due to Transition Buffer.


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