New Delhi, April 12 -- Several small businesses and industry groups are urging the government to reverse the revised definitions of Micro, Small, and Medium Enterprises (MSMEs), arguing that the changes are hurting truly small businesses.

Laghu Udyog Bharati, an organization representing over 48,000 micro and small businesses, has formally requested the government to restore the earlier MSME classifications.

The group says the current definitions, introduced in 2020, allow larger businesses to enjoy benefits meant for smaller ones, leaving genuine micro units at a disadvantage.

Under the revised criteria, MSMEs are now defined based on both investment and turnover. For instance, a business with up to Rs 1 crore investment and Rs 5 cror...