NationalFriday, 7 August 2026·The Hindu - National
Lok Sabha clears MSME Development Amendment Bill, 2026 to speed up delayed payment recovery
Parliament passed the MSME Development (Amendment) Bill, 2026, with provisions for faster dispute resolution and at least 50% payment in some cases.
Key highlights
Direct fact
On August 7, 2026, the Lok Sabha passed the Micro, Small and Medium Enterprises Development (Amendment) Bill, 2026, after the Rajya Sabha had cleared it on August 3, to address delayed payments and liquidity stress in the MSME sector.
Key specifics
- The Bill prescribes timelines for faster adjudication of delayed-payment disputes involving MSMEs.
- It allows courts to order payment of at least 50% of the awarded amount if an application to set aside an order remains pending for more than six months.
- MSMEs contribute 31% to India’s GDP, 36% to manufacturing and 41% to exports.
- MSME credit rose from ₹10 lakh crore in 2014-15 to over ₹38.35 lakh crore, according to Minister Jitan Ram Manjhi.
- The Lok Sabha passed the Bill in nearly 16 minutes amid Opposition protests during the Monsoon Session Day 15.
Exam lens
Economy and Parliament, MSME sector, delayed payments, adjudication timelines, 50% award payment, GDP-manufacturing-exports shares. TNPSC may ask: which Bill was passed in August 2026 to improve MSME payment recovery?