New Delhi, April 12 -- Some of India's tiniest businesses are pushing back against a recent change in central rules that they fear will allow bigger rivals to eat their lunch. The resistance comes after the government redefined micro, small and medium enterprises (MSMEs), a change that turned numerous medium-sized enterprises into small businesses overnight.

Per a government notification that took effect on 1 April, small companies' definition has been changed to those with investments in plant and machinery less than Rs.25 crore (from Rs.10 crore earlier) and turnover less than Rs.100 crore ( Rs.50 crore earlier). This effectively means companies with turnover between Rs.50 crore and Rs.100 crore, which were classified as medium earlier...