Micro, Small and Medium Enterprises (MSMEs) play a significant role in the economic development of India, especially in rural and semi-urban areas. These enterprises contribute to employment generation, industrial production, exports, and balanced regional development. In order to promote and support these enterprises effectively, the Government of India introduced a revised classification of MSMEs so that businesses could be categorized based on their scale and capacity. The revised classification was announced by the Government of India under the guidelines of the Ministry of Micro, Small and Medium Enterprises and came into effect from 1 July 2020. This classification replaced the earlier system which was based only on investment in plant and machinery or equipment. According to the revised classification, both manufacturing and service enterprises are treated equally and are categorized based on two criteria: investment in plant and machinery or equipment and annual turnover. Under this revised system, a micro enterprise is defined as an enterprise where the investment in plant and machinery or equipment does not exceed ₹1 crore and the annual turnover does not exceed ₹5 crore. A small enterprise is defined as one where the investment does not exceed ₹10 crore and the annual turnover does not exceed ₹50 crore. A medium enterprise is defined as an enterprise where the investment does not exceed ₹50 crore and the annual turnover does not exceed ₹250 crore. This unified classification has simplified the earlier system and provided a more realistic framework for the growth of enterprises. The revised classification has several advantages. It allows enterprises to grow without the fear of losing their MSME status too quickly. Earlier, many businesses hesitated to expand because crossing the investment limit would remove them from MSME benefits. The new system provides a broader range and encourages business expansion. The inclusion of turnover as a criterion ensures that enterprises are classified not only by their investment capacity but also by their market performance. MSMEs possess several distinctive features that make them important in the industrial and economic structure of India. One of the most important features of MSMEs is their low capital requirement. Unlike large industries, MSMEs require relatively small investments to start and operate. This makes them accessible to entrepreneurs, especially in rural areas where financial resources may be limited. Small savings and local investments are often sufficient to establish such enterprises. Another feature of MSMEs is their labor-intensive nature. These enterprises depend more on human labor than on heavy machinery or advanced automation. As a result,