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DAILY NEWS ANALYSIS

Monthly DNA

19 Apr, 2026

53 Min Read

Revised Criteria for Classifying MSMEs

GS-III : Indian Economy and Related topics Industries and Industrial policy

Revised Criteria for Classifying MSMEs

On 21st March 2025, the Ministry of Micro, Small and Medium Enterprises revised the classification criteria for MSMEs.

The revised MSME classification criteria came into effect from 1st April 2025, increasing both investment and turnover thresholds across enterprise categories.

Enterprise Category Earlier Investment Limit Revised Investment Limit Earlier Turnover Limit Revised Turnover Limit
Micro Enterprise Rs. 1 crore Rs. 2.5 crore Rs. 5 crore Rs. 10 crore
Small Enterprise Rs. 10 crore Rs. 25 crore Rs. 50 crore Rs. 100 crore
Medium Enterprise Rs. 50 crore Rs. 125 crore Rs. 250 crore Rs. 500 crore
PT Facts
  • Composite Criteria: MSME classification is based on both investment and turnover limits.
  • Export Turnover: Export turnover is excluded while calculating turnover for MSME classification.
  • Policy Support: Higher thresholds allow more firms to remain within the MSME category.
  • Effective Date: Revised criteria came into force from 1st April 2025.

Source:

Startup India 2.0: Revised Recognition Framework 2026

GS-III : S&T Developments & their Applications & Effects in Everyday Life Current Science and Technology

Startup India 2.0: Revised Recognition Framework 2026

The Government has overhauled the Startup India Action Plan, originally launched on 16 January 2016, to mark its second decade of implementation.

Managed by the Department for Promotion of Industry and Internal Trade (DPIIT), the revised 2026 framework aims to promote high-tech innovation, rural entrepreneurship, and long-term “patient capital”.

Aspect Details
Revised Framework The revised Startup India 2.0 framework seeks to strengthen innovation-led growth, especially in deep technology and rural sectors.
Higher Turnover Threshold The annual turnover limit for startup recognition has been increased from Rs. 100 crore to Rs. 200 crore.
Deep Tech Sub-category For R&D-intensive sectors, the eligibility age has been extended from 10 years to 20 years, while the turnover limit has been raised to Rs. 300 crore.
Cooperative Societies For the first time, Cooperative Societies including Multi-State and State Cooperatives are eligible for startup recognition.
Statutory Benefits Recognised startups receive benefits such as tax holidays under Section 80-IAC and exemptions from Angel Tax under Section 56(2)(viib).
National Startup Day India celebrates National Startup Day every year on 16 January to recognise the contribution of startups to the Viksit Bharat vision.
Policy Shift The revised framework reflects a shift from only early-stage promotion toward scale-oriented and long-gestation innovation ecosystems.
PT Facts
  • DPIIT Recognition: Startup recognition is granted by the Department for Promotion of Industry and Internal Trade.
  • Section 80-IAC: Provides tax holiday benefits for 3 consecutive years out of 10 years.
  • Angel Tax: Exemption available under Section 56(2)(viib) for eligible startups.
  • Deep Tech: Includes AI, semiconductors, robotics, biotech, space tech and advanced materials.
  • National Startup Day: Celebrated annually on 16 January.
  • Framework Goal: Encourages patient capital and long-term innovation ecosystems.

Source:

States’ Startup Ecosystem Ranking

GS-III : Growth and Development India's Growth Strategy

States’ Startup Ecosystem Ranking

On 16th January 2026, the Department for Promotion of Industry and Internal Trade (DPIIT) released the 5th Edition of States’ Startup Ecosystem Ranking.

The ranking promotes competitive federalism by assessing States and Union Territories on startup policy, incubation, funding, market access and innovation support.

Aspect Details
Ranking Framework States and Union Territories were divided into two broad categories: Category A and Category B.
Category A Category A was further divided into A1 and A2 based on population size.
Category A1 Category A1 includes all States and Union Territories with a population of more than 5 crore.
Category A2 Category A2 includes all States and Union Territories with a population of more than 1 crore and less than 5 crore.
Category B Category B includes all States and Union Territories with a population of less than 1 crore.
SRF 5.0 Result Category A Category B
Best Performer Gujarat Arunachal Pradesh, Goa
Top Performer Karnataka, Punjab, Tamil Nadu, Uttar Pradesh Himachal Pradesh
Leaders Rajasthan, Kerala, Madhya Pradesh, Uttarakhand, Telangana, Maharashtra, Andhra Pradesh, Haryana Manipur, Nagaland, Meghalaya
Aspiring Leaders Odisha, Assam, Bihar, Jammu & Kashmir Mizoram, Sikkim, Tripura, Andaman and Nicobar Island
Emerging Startup Ecosystem Chhattisgarh, NCT of Delhi Puducherry, Chandigarh, Lakshadweep, Dadra and Nagar Haveli and Daman and Diu
PT Facts
  • Purpose: Promotes competitive federalism among States and Union Territories.
  • DPIIT: Functions under the Ministry of Commerce and Industry.
  • Assessment Areas: Institutional support, incubation and funding.
  • Innovation Support: Rankings examine market access, mentorship and ecosystem performance.
  • Best Performer A: Gujarat.
  • Best Performer B: Arunachal Pradesh and Goa.

Source:

Decarbonising MSMEs: Roadmap for Green Transition

GS-III : Disaster Management Disaster Management India

Decarbonising MSMEs: Roadmap for Green Transition

NITI Aayog unveiled the roadmap titled “Decarbonising MSMEs: Roadmap for Green Transition” on 21st January 2026.

The 10-year action plan aims to guide nearly 69 million MSMEs toward India’s 2070 net-zero target through energy efficiency, green electricity and alternative fuels.

Aspect Details
Objective The roadmap seeks to support MSMEs in transitioning toward low-carbon growth and align them with India’s net-zero emissions target for 2070.
Core Transition Levers The action plan focuses on energy efficiency, green electricity, and alternative fuels.
Export Competitiveness Decarbonisation is considered necessary to maintain export competitiveness against emerging global standards such as the European Union’s Carbon Border Adjustment Mechanism (CBAM).
Climate and Cost Benefits Green investments are expected to reduce climate risks and improve cost efficiency, with many investments recovering costs within five years.
NPMA Recommendation The report recommends creating a National Project Management Agency (NPMA) for cluster-level implementation and subsidy management.
Financial Support A proposed Climate Sister Impact Fund (CSIF) would provide concessional hybrid capital for adoption of low-carbon technologies.
Demand Aggregation The roadmap suggests demand aggregation mechanisms to reduce the cost of solar equipment for MSMEs.
MRV Tools Standardised Monitoring, Reporting and Verification (MRV) tools are proposed for systematic emission tracking.
Regulatory Safeguards A Regulatory Impact Assessment (RIA) committee has been proposed to prevent excessive economic burdens on small enterprises.
PT Facts
  • CBAM: EU’s Carbon Border Adjustment Mechanism is linked to carbon pricing in trade.
  • Net-zero Target: India aims to achieve net-zero emissions by 2070.
  • NITI Aayog: Premier public policy think tank of the Government of India.
  • MRV: Stands for Monitoring, Reporting and Verification.
  • Green Transition: Helps improve export competitiveness and climate resilience.
  • MSME Coverage: The roadmap targets nearly 69 million MSMEs across India.

Source:

TEAM Initiative

GS-III : Growth and Development India's Growth Strategy

TEAM Initiative

On 29th January 2025, the Ministry of Micro, Small & Medium Enterprises, in collaboration with the Open Network for Digital Commerce (ONDC), launched the MSME Trade Enablement and Marketing (TEAM) Initiative.

The initiative aims to strengthen the digital commerce participation of MSMEs by improving onboarding, market access, payments, logistics and capacity-building support.

Aspect Details
Initiative TEAM stands for MSME Trade Enablement and Marketing Initiative.
Launch Partners The initiative was launched by the MSME Ministry in collaboration with the Open Network for Digital Commerce (ONDC).
Duration The programme will run for three years, from FY 2024-25 to FY 2026-27.
Target Beneficiaries The initiative targets 5 lakh Micro and Small Enterprises (MSEs), including 50% women-led enterprises.
Implementation Partner The initiative is being implemented through the National Small Industries Corporation (NSIC).
Focus Areas The programme focuses on digital storefronts, integrated payment systems, logistics support, seller onboarding assistance, catalogue creation, and account management.
Capacity Building More than 150 workshops will be conducted in Tier-II and Tier-III cities, with special focus on SC/ST and women entrepreneurs.
PT Facts
  • ONDC: Open digital network aimed at democratising digital commerce in India.
  • MSME Ministry: Nodal ministry for MSME policy support and development.
  • NSIC: Supports MSMEs through marketing, finance, technology and capacity-building services.
  • MSEs: Most employment-intensive segment within the MSME ecosystem.
  • Digital Commerce: Focuses on expanding MSME access to online markets and customers.
  • Inclusive Outreach: Special focus on women and SC/ST entrepreneurs.

Source:

Mutual Credit Guarantee Scheme for MSMEs

GS-III : Growth and Development India's Growth Strategy

Mutual Credit Guarantee Scheme for MSMEs

On 29th January 2025, the Central Government approved the Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSMEs).

The scheme aims to strengthen MSME access to institutional credit by providing 60% guarantee coverage for loans sanctioned towards purchase of equipment and machinery.

Aspect Details
Objective The scheme aims to improve credit availability for MSMEs by reducing lending risk for financial institutions.
Target Borrowers Eligible beneficiaries are MSMEs possessing a valid Udyam Registration Number.
Loan Limit Credit facilities of up to Rs. 100 crore can be sanctioned for purchase of equipment and machinery.
Guarantee Coverage The National Credit Guarantee Trustee Company Limited (NCGTC) provides 60% guarantee coverage to Member Lending Institutions (MLIs).
Project Cost Condition At least 75% of the project cost must be allocated toward purchase of equipment or machinery.
Scheme Duration The scheme will remain applicable for four years or until cumulative guarantees worth Rs. 7 lakh crore are issued, whichever is earlier.
Technology Upgradation The focus on machinery and capital goods is intended to support technology upgradation and improve MSME productivity.
PT Facts
  • NCGTC: Government of India company under the Ministry of Finance.
  • Udyam Registration: Official online registration system for MSMEs.
  • Credit Guarantee: Helps reduce lender risk for MSME loans.
  • Collateral-light Loans: Credit guarantee mechanisms support easier loan access.
  • Capital Goods Focus: Scheme encourages machinery modernisation and efficiency.
  • MLIs: Member Lending Institutions receive guarantee protection under the scheme.

Source:

ADEETIE Scheme

GS-III : Disaster Management Disaster Management India

ADEETIE Scheme

On 15th July 2025, the Union Ministry of Power launched the ADEETIE Scheme at a national rollout event in Panipat, Haryana.

The scheme targets energy efficiency improvements in India’s industrial sector, particularly MSME-dominated industrial clusters, and is being implemented by the Bureau of Energy Efficiency (BEE).

Aspect Details
Full Form ADEETIE stands for Assistance in Deploying Energy Efficient Technologies in Industries & Establishments.
Nodal Ministry The scheme is under the Ministry of Power.
Implementing Agency The scheme is being implemented by the Bureau of Energy Efficiency (BEE).
Duration The scheme will run from FY 2025-26 to FY 2027-28.
Core Objective ADEETIE promotes the deployment of energy-efficient technologies in industrial units, especially in MSME-based clusters.
Target Sectors The scheme covers 14 energy-intensive sectors: Brass, Bricks, Ceramics, Chemicals, Fishery, Food Processing, Forging, Foundry, Glass, Leather, Paper, Pharma, Steel Re-rolling and Textiles.
PT Facts
  • Nodal Ministry: Ministry of Power.
  • Implementing Agency: Bureau of Energy Efficiency.
  • BEE: Established under the Energy Conservation Act, 2001.
  • Full Form: Assistance in Deploying Energy Efficient Technologies in Industries & Establishments.
  • Scheme Duration: FY 2025-26 to FY 2027-28.
  • Core Objective: Energy-efficient technologies in MSME-dominated industrial clusters.

Source:

WEF Expands IR 4.0 Ecosystem

GS-III : S&T Developments & their Applications & Effects in Everyday Life Current Science and Technology

WEF Expands IR 4.0 Ecosystem

On 22nd January 2026, the World Economic Forum (WEF) announced the establishment of five new Centres for the Fourth Industrial Revolution (C4IR), including one in Andhra Pradesh, India.

The expansion strengthens the global IR 4.0 ecosystem focused on emerging technologies, energy transition, cyber resilience and innovation governance.

Aspect Details
New Centres The WEF announced five new C4IR centres in France, the United Kingdom, the United Arab Emirates, and India (Andhra Pradesh).
IR 4.0 Concept The Fourth Industrial Revolution (IR 4.0) refers to the convergence of digital, physical and biological technologies.
Core Technologies IR 4.0 includes technologies such as Artificial Intelligence (AI), robotics, the Internet of Things (IoT), and quantum computing.
Term Origin The term Fourth Industrial Revolution was coined by Klaus Schwab, founder of the WEF, in 2016.
Global Network The Fourth Industrial Revolution Network, launched in 2017, promotes collaboration between governments, industries and institutions on responsible technology governance.
Focus Areas Major focus areas include AI innovation, energy transition, cyber resilience, and frontier technologies.
India’s Existing Centres India already hosts C4IR centres in Mumbai and Telangana.
Andhra Pradesh Centre The Andhra Pradesh centre will be called the Centre for Energy and Cyber Resilience.
Core Objective The new Andhra Pradesh centre will support energy transition innovation and strengthen cybersecurity capabilities across industries.
PT Facts
  • WEF: World Economic Forum is headquartered in Geneva, Switzerland.
  • Klaus Schwab: Founder of the WEF and associated with the IR 4.0 concept.
  • C4IR: Works on governance and responsible use of emerging technologies.
  • IR 4.0: Blurs boundaries between physical, digital and biological systems.
  • India Link: India’s centres focus on technology governance and industrial innovation.
  • Network Launch: Fourth Industrial Revolution Network was launched in 2017.

Source:

India Enhances Domestic Rare Earth Ecosystem

GS-III : Infrastructure and investment Energy

India Enhances Domestic Rare Earth Ecosystem

The Union Budget 2026-27 has emphasised India’s self-reliance in critical materials by supporting domestic rare earth value chains.

The new corridor-based approach complements the approved Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets and aims to build integrated industrial ecosystems.

Aspect Details
Rare Earth Corridors Rare Earth Corridors are integrated, state-anchored industrial value chains that bring together mining, processing, R&D and manufacturing activities in clustered ecosystems.
Mining Link The corridors will geographically co-locate the mining of rare earth-bearing minerals with downstream industrial activities.
Processing and Separation They will support separation and processing of rare earth elements (REEs), a critical stage for building domestic rare earth supply chains.
R&D and Pilot Facilities The corridor model includes research and development as well as pilot facilities to close technology gaps.
Magnet Manufacturing A major focus is manufacturing, especially Rare Earth Permanent Magnets (REPMs), which are known for high magnetic strength and stability.
Corridor Benefits The corridor approach reduces logistics costs, closes technology gaps, and accelerates time-to-market by creating clustered ecosystems instead of isolated projects.
Four States Involved The four proposed states are Odisha, Kerala, Andhra Pradesh, and Tamil Nadu.
Monazite Resource Base India has 13.15 million tonnes of monazite deposits containing an estimated 7.23 million tonnes of rare-earth oxides.
Geographic Spread These deposits occur across Odisha, Kerala, Andhra Pradesh, Tamil Nadu, West Bengal, Gujarat, Maharashtra, and Jharkhand, mainly in coastal beach sands, teri/red sands and inland alluvium.
PT Facts
  • Rare Earth Elements: Group of 17 elements including 15 lanthanides, scandium and yttrium.
  • Monazite: Major source of rare earths and thorium in India.
  • Strategic Use: REEs are crucial for EVs, wind turbines and electronics.
  • Defence Link: Rare earths are important for defence systems and clean energy technologies.
  • Supply Chain Concern: Rare earth supply chains are highly concentrated, especially in China.
  • REPMs: Rare Earth Permanent Magnets have high magnetic strength and stability.

Source:

Limestone Classified as a Major Mineral

GS-III : Infrastructure and investment Energy

Limestone Classified as a Major Mineral

On 14th October 2025, the Ministry of Mines issued a notification classifying Limestone completely as a major mineral.

Earlier, limestone was classified as both a major and minor mineral depending on its end use. The revised classification brings it fully under the major mineral category.

Aspect Details
Notification The Ministry of Mines notified that limestone will now be classified entirely as a major mineral.
Earlier Classification Previously, limestone was treated as both a major mineral and a minor mineral depending on its end use.
Major Minerals Major minerals are listed under the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) and are generally associated with large-scale industrial use.
Examples of Major Minerals Common examples include Calcite, Clay, Coal, Quartz and other industrial minerals.
Minor Minerals Minor minerals are regulated under rules framed by State Governments and are mainly used in construction and small-scale industries.
Limestone Applications Limestone is an important raw material for the cement, steel, chemical and construction industries.
Regulatory Impact With major mineral status, central regulation becomes more prominent in the governance and regulation of limestone mining.
PT Facts
  • MMDR Act: Mines and Minerals (Development and Regulation) Act, 1957 is the principal mineral regulation law in India.
  • Limestone Use: Key raw material for cement, steel and construction industries.
  • Major Minerals: Typically associated with large-scale industrial applications.
  • Minor Minerals: Regulation is largely under State Governments.
  • Regulatory Shift: Central oversight becomes stronger after major mineral classification.
  • Industrial Importance: Limestone is critical for infrastructure and manufacturing sectors.

Source:

Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets

GS-III : Infrastructure and investment Investment models

Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets

On 26th November 2025, the Union Cabinet approved the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets.

The scheme aims to build domestic capacity for integrated production of rare earth permanent magnets, from oxides to finished magnets, and reduce import dependence in strategic sectors.

Aspect Details
Scheme Aim The scheme aims to establish 6,000 MTPA of integrated production capacity, covering the full chain from rare earth oxides to finished magnets.
Implementation Model Implementation will be distributed among five beneficiaries selected through global competitive bidding.
Scheme Period The scheme will be implemented over a 7-year period.
Rising Demand India’s requirement for Rare Earth Permanent Magnets (REPMs) is expected to double by 2030.
Import Dependence India imported over 53,000 metric tonnes of rare earth permanent magnets in 2024-25.
Supply Security The scheme seeks to reduce vulnerability to China’s supply chain dominance and export restrictions in the rare earth magnet sector.
Industrial Importance Domestic REPM production is crucial for electric vehicles, renewable energy, electronics and defence manufacturing.
PT Facts
  • REPM: Rare Earth Permanent Magnets are essential for EV motors and wind turbines.
  • Electronics Use: REPMs are also used in electronics and defence systems.
  • Sintering: Powdered material is compacted and heated to form a solid structure.
  • Critical Minerals: Rare earths are part of the strategic critical minerals ecosystem.
  • Import Dependence: Reducing imported magnet dependence is vital for EV manufacturing.
  • Renewable Energy: Domestic magnets support wind energy and clean-tech supply chains.

Source:

State Mining Readiness Index

GS-III : Infrastructure and investment Investment models

State Mining Readiness Index

On 16th October 2025, the Ministry of Mines released the State Mining Readiness Index (SMRI) and State rankings.

The index is a major step to encourage mining sector reforms in States and strengthen competitive federalism in mineral governance.

Aspect Details
What is SMRI? SMRI is a framework to assess and rank Indian States based on their reform-readiness, operational efficiency and sustainability practices in the non-coal mining sector.
Developing Ministry The index has been developed by the Ministry of Mines.
Governance Approach SMRI reflects a data-driven approach to strengthen federal governance and improve resource management in the mining sector.
Category A Leaders In Category A, Madhya Pradesh, Rajasthan, and Gujarat emerged as the top performers for governance and mineral resource management.
Category B Leaders In Category B, Goa, Uttar Pradesh, and Assam led the rankings due to initiatives in exploration and operational efficiency.
Category C Leaders In Category C, Punjab, Uttarakhand, and Tripura occupied the top positions, reflecting rising mining momentum even in low-resource States.
PT Facts
  • Nodal Ministry: Ministry of Mines.
  • Sector Covered: Non-coal mining sector.
  • Purpose: Promotes competitive federalism in mineral governance.
  • Parameters: Reform readiness, operational efficiency and sustainability.
  • Resource Management: SMRI supports better data-based mineral governance.
  • Category A Top States: Madhya Pradesh, Rajasthan and Gujarat.

Source:

National Industrial Classification (NIC) 2025

GS-III : Indian Economy and Related topics Industries and Industrial policy

National Industrial Classification (NIC) 2025

On 18th November 2025, the Ministry of Statistics and Programme Implementation (MoSPI) released the National Industrial Classification (NIC) 2025.

NIC 2025 updates the 2008 framework and aligns India’s industrial classification system with the United Nations’ International Standard Industrial Classification (ISIC) Revision 5.

Aspect Details
Objective NIC 2025 standardises economic activity classification for surveys, censuses, national accounts and policymaking.
Updated Framework The new classification updates the earlier NIC 2008 framework.
Global Alignment NIC 2025 aligns with the UN’s International Standard Industrial Classification (ISIC) Revision 5.
6-Digit Coding The framework has been upgraded from a 5-digit to a 6-digit coding structure to improve granularity and flexibility.
Indigenous Sector Recognition Traditional sectors such as Ayush-based healthcare and the handloom industry have been formally included.
Technology Agnostic Approach Economic activities are classified based on the activity itself, irrespective of traditional or modern production methods.
Digital Economy Integration NIC 2025 distinctly classifies sectors such as blockchain, cloud infrastructure, fintech, e-commerce, and platform-based intermediation.
Green Economy Coverage Expanded classification coverage has been provided for carbon capture, waste management, and renewable energy sectors.
Policy Relevance The revised classification improves sector-wise data comparability and supports evidence-based economic planning.
PT Facts
  • MoSPI: Ministry of Statistics and Programme Implementation is the nodal ministry for official statistics.
  • NIC: Used for classifying economic activities in surveys and censuses.
  • ISIC: International Standard Industrial Classification is maintained by the United Nations.
  • Digital Sectors: Includes blockchain, fintech, cloud and e-commerce activities.
  • Green Economy: Expanded coverage for renewable energy and carbon capture sectors.
  • Policy Use: Supports evidence-based planning and sector-wise data comparison.

Source:

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