Sri Vijaya Puram, May 22:The District Industries Centre (DIC), Department of Industries, Andaman & Nicobar Islands, is pleased to share a major policy announcement by the Government of India aimed at empowering Micro, Small, and Medium Enterprises (MSMEs) across the country, including the entrepreneurial community in A&N Islands. As per the Union Budget 2025-26 presented by Hon’ble Finance Minister, Smt. Nirmala Sitharaman, the definition of MSMEs has been significantly revised to facilitate greater inclusion, Ease of Doing Business and access to support schemes. The new classification is as follows:
| Existing MSME Classification | |||
| Classification | Micro | Small | Medium |
| Manufacturing & Services | Investment ≤ Rs.1 crore Turnover ≤ Rs.5 crore | Investment ≤ Rs.10 crore Turnover ≤ Rs.50 crore | Investment ≤ Rs.50 crore Turnover ≤ Rs.250 crore |
| Revised MSME Classification | |||
| Classification | Micro | Small | Medium |
| Manufacturing & Services | Investment ≤ Rs.2.5 crore Turnover ≤ Rs.10 crore | Investment ≤ Rs.25 crore Turnover ≤ Rs.100 crore | Investment ≤ Rs.125 crore Turnover ≤ Rs.500 crore |
This expanded scope will allow a wider range of enterprises in the Andaman & Nicobar Islands to register and benefit from MSME schemes and initiatives.
The revised definition opens up new avenues for local entrepreneurs and businesses to grow with enhanced access to financial assistance, government subsidies, and procurement preferences. The Credit Guarantee Scheme has been upgraded, now offering credit up to Rs.10 crore and further reduction in Annual Guarantee Fee for guarantees above Rs.1 Crore to Rs.5 Crores. In addition, the government has announced the introduction of 10 lakh customized credit cards for micro enterprises registered on the Udyam portal, with each card offering a Rs.5 lakh limit in the first year. This move will be a great enabler for small-scale entrepreneurs in remote areas like the islands, giving them reliable access to working capital.
The DIC, Andaman & Nicobar Islands encourages all unregistered entrepreneurs to come forward and register their units on the Udyam portal if not already registered till date to take full advantage of these benefits. Existing entrepreneurs registered in Udyam Portal may also update and reprint their Udyam certificates to classify their units as per the new definition. This redefinition of MSMEs is a crucial step towards promoting innovation, employment and inclusive development.
For assistance or any queries, the needy entrepreneurs may visit District Industries Centre, Udyog Parisar, Middle Point or call over phone no 03192-232819/232601.
