MSMEs contribute 31% to India’s GDP, 36% to the country’s manufacturing and 41% to its exports. Image for representation
| Photo Credit: B. Jothi Ramalingam
The Lok Sabha on Friday (August 7, 2026) passed without a debate a Bill that seeks to empower and tackle the issue of delayed payments faced by micro, small and medium enterprises (MSMEs), amid protests by Opposition MPs.Parliament Monsoon Session Day 15 updatesThe Micro, Small and Medium Enterprises Development (Amendment) Bill, 2026, has now been cleared by Parliament. It was passed in the Rajya Sabha on August 3.The Bill seeks to address the current challenges faced by the MSME sector by improving the administrative structure and facilitating payment mechanisms.Provisions to deal with delayed payments to MSMEs by prescribing timelines to ensure faster adjudication of disputes, providing recovery of the settlement agreement, and addressing their liquidity issues are part of the Bill.It also seeks to empower courts to order payment of at least 50% of the awarded amount to MSME suppliers if the application to set aside an order is pending for more than six months.
Union Minister of Micro, Small and Medium Enterprises Jitan Ram Manjhi
