Lok Sabha passes MSME amendment bill to speed supplier payments
On Friday, the Lok Sabha quickly passed the Micro, Small and Medium Enterprises Development (Amendment) Bill, 2026, aiming to help small businesses get paid faster.
The bill moved through despite protests and was cleared in nearly 16 minutes of proceedings, with no debate.
It had already cleared the Rajya Sabha on August 3, four days earlier.
Courts can order 50% MSME payouts
The bill sets clear deadlines for resolving payment disputes and makes it easier for MSMEs to recover what they're owed.
If an application to set aside an order remains pending for more than six months, courts can order at least 50% of the awarded amount to MSME suppliers to be paid out.
MSMEs are a big deal: they drive 31% of India's GDP and 41% of its exports.
MSME Minister Jitan Ram Manjhi highlighted how credit to these businesses has jumped from ₹10 lakh crore in 2014-15 to over ₹38.35 lakh crore currently.