On May 13, 2020, the Indian government announced a new classification system for micro, small, and medium enterprises (MSMEs) in India. Under this system, all MSMEs in India will be known as "Udyam" and will be required to go through a registration process called "Udyam Registration" The Union Cabinet approved this classification, and Udyam registration became mandatory for all MSMEs starting on July 1, 2020. The goal of this initiative is to identify and support MSMEs in India. Contents What is MSME DEFINITION? MSME classification Composite criteria of investment and turnover How to calculate investment in plant and machinery for MSME How to calculate turnover for MSME MSME Udyam registration What is MSME DEFINITION? MSME classification 2021 - an enterprise shall be classified as a Micro, Small or Medium enterprise on the basis of the following criteria, namely: (i) A micro enterprise, where the investment in plant and machinery or equipment does not exceed one c