New Delhi, April 11 -- The Union government's decision to revise classification criteria for micro, small, and medium enterprises (MSMEs), effective April 1, has generated unease among representative bodies.

Some organisations argue the revision will adversely impact micro and small firms, which constitute approximately 99.99 percent of MSMEs in India.

Finance Minister Nirmala Sitharaman announced the revision during her February Budget speech, increasing the investment cap for each MSME segment by 2.5 times and the turnover cap by two times.

This reclassification means some previously medium-sized enterprises now qualify as small enterprises, while some small firms are now categorised as micro enterprises.

Laghu Udyog Bharati, an RSS...