Lok Sabha passes MSME bill to tackle delayed payments without debate

The Lok Sabha on Friday 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 members.

The 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 per cent of the awarded amount to MSME suppliers if the application to set aside an order is pending for more than six months.

MSMEs contribute 31 per cent to India's GDP, 36 per cent to the country's manufacturing and 41 per cent to its exports.

"The outstanding credit disbursed to MSMEs, which stood at ₹10 trillion in 2014-15, has today increased to over ₹38.35 trillion, denoting that the credit flow to MSMEs is rising steadily," MSME Minister Jitan Ram Manjhi had told the Rajya Sabha before the passage of the Bill in the Upper House on August 3.

On Friday, opposition members continued with their protests in the Lok Sabha over various issues and the Zero Hour was disrupted. The House cleared the Bill in the nearly 16-minute proceedings after it met at 12 noon following the first adjournment of the day. Later, the Lower House was adjourned till Monday.