Archive · 29 Jul 2026
MSME Amendment Bill 2026 Aims to Speed Up Payments
The Indian government has introduced a new bill to help small and medium-sized businesses get paid faster.
This bill, called the Micro, Small and Medium Enterprises Development (Amendment) Bill, 2026, aims to reduce delays in payments and make it easier for these businesses to resolve disputes.
It also proposes to remove minor penalties for MSMEs.
The bill mandates that government procurers must pay through a special system called TReDS, which helps speed up payments.
Additionally, the bill allows states to set up more councils to help MSMEs with their grievances.
The goal is to make sure these businesses get their money on time, which is important because they contribute a lot to India's economy.
The Micro, Small and Medium Enterprises Development (Amendment) Bill, 2026, was introduced to address delayed payments and improve liquidity for MSMEs.
The bill mandates the use of TReDS platforms for faster payments and allows states to set up more facilitation councils for dispute resolution.
MSMEs contribute 31.1% to India's GDP and 48% of exports, making this bill significant for the economy.
Over 103,000 payment-related complaints involving claims of over ₹29,000 crore have been filed since 2017.
The bill also proposes to decriminalize minor offenses and provide for a national digital platform for MSME registration.
- Who
- Union MSME Minister Jitan Ram Manjhi, MSMEs, Government of India
- What
- Introduction of the Micro, Small and Medium Enterprises Development (Amendment) Bill, 2026
- When
- July 28, 2026
- Where
- Rajya Sabha, New Delhi
- Why
- To address delayed payments, improve liquidity, and facilitate the growth of MSMEs
Government and MSMEs
Buyers and Large Enterprises
Payment Timelines
Government and MSMEs
The government aims to mandate faster payment timelines to ensure liquidity for MSMEs.
Buyers and Large Enterprises
Buyers and large enterprises may face increased financial burdens due to stricter payment timelines.
Penalties and Decriminalization
Government and MSMEs
MSMEs support the decriminalization of minor offenses to reduce compliance burdens.
Buyers and Large Enterprises
Buyers and large enterprises may argue that decriminalization could reduce accountability for delayed payments.
- Bill Name
- Micro, Small and Medium Enterprises Development (Amendment) Bill, 2026
- Introduced By
- Union MSME Minister Jitan Ram Manjhi
- Key Provisions
- Faster payment timelines, decriminalization of minor offenses, mandatory use of TReDS platforms
- MSME Contribution to GDP
- 31.1%
- MSME Contribution to Exports
- 48%
- Number of Registered MSMEs
- 87 million
- Pending Payment Complaints
- Over 103,000
- Total Claims in Pending Complaints
- ₹29,000 crore
