As per the Gazette Notification S.O. 1364(E) dated 21st March 2025, issued by Ministry of Micro, Small, and Medium Enterprises (MSME) the eligibility criteria for classification of MSMES has been revised. This revision marks a significant step towards fostering industrial growth, encouraging higher investments, and strengthening India's position as a global manufacturing hub. In line with this notification, Department for Promotion of Industry and Internal Trade (DPIIT) has updated the eligibility criteria for issuance of Industrial Entrepreneur Memorandum (IEM) acknowledgment.

Revised Eligibility Criteria for IEM Acknowledgment As per the updated guidelines, enterprises meeting the following revised criteria shall be eligible for IEM acknowledgment:

• Investment in plant & machinery/equipment exceeding 125 crore, or/and
• Annual turnover exceeding *500 crore

The revised criteria shall be applicable w.e.f. 1st April, 2025.

This is a significant increase in threshold limits in investment in plant & machinery from existing 50 crore to 125 crore and annual turnover limit from existing 250 crore to 500 crore.

 IEM acknowledgment is for:

• Large-scale operating in requiring compulsory licensing under the Industries (Development & Regulation) Act, 1951.
• Companies having investment in plant and machinery, or/and annual turnover beyond the limits set for MSMES.

It is, therefore, notified for information of all stakeholders that eligible enterprises can apply for IEM acknowledgment through the G2B Portal as per the revised eligibility criteria.

IEM eligibility revised: higher investment and turnover thresholds now determine acknowledgment and reclassification. Enterprises with investment in plant and machinery or equipment exceeding 125 crore, or annual turnover exceeding 500 crore, qualify for IEM acknowledgment under the revised guidelines effective 1 April 2025, replacing earlier thresholds and reclassifying units beyond MSME limits.