MSME Amendment Bill Could Be an IBC Moment for MSMEs

Small businesses in India sometimes have to wait a very long time to get paid by bigger companies.

This makes it hard for them to buy materials and pay their workers.

A new law called the MSME Development (Amendment) Bill, 2026 wants to fix this problem.

It sets time limits for solving payment arguments.

If a small business and a buyer disagree, a mediator has 90 days to help them settle.

If that does not work, an arbitrator must step in within 30 more days.

Buyers who want to fight a decision must first put 75% of the money in a safe place.

This makes it harder for buyers to delay payments on purpose.

Experts at Crisil Intelligence think this law could be as important as the Insolvency and Bankruptcy Code.

They believe it can help small businesses get their money faster and grow.