The lower house of Parliament approved a measure on Friday, August 7, 2026, aimed at strengthening micro, small and medium enterprises and resolving problems with late payments. The approval occurred without discussion as opposition lawmakers protested.
The Micro, Small and Medium Enterprises Development (Amendment) Bill, 2026, has received clearance from both houses after the upper house passed it on August 3.
The legislation aims to improve the administrative framework for the MSME sector and enhance payment processes.
Key features include setting deadlines for resolving payment disputes, enabling recovery of agreed settlements, and helping with cash flow problems.
Courts may be authorized to require payment of at least half the awarded sum to MSME suppliers if a challenge to an order remains unresolved beyond six months.
MSMEs account for 31 percent of India’s gross domestic product, 36 percent of manufacturing output, and 41 percent of exports.
The MSME minister noted that outstanding credit to these enterprises rose from 10 lakh crore rupees in 2014-15 to more than 38.35 lakh crore rupees currently, indicating steady improvement in financing.
On Friday, opposition protests disrupted proceedings in the lower house, including the zero hour. The bill was passed during a brief 16-minute session that began at noon after an initial adjournment. The house was then adjourned until Monday.
