THEBUSINESSBYTES
BUREAU
NEW
DELHI, JULY 16, 2026
The Centre is likely
to introduce the Micro, Small and Medium Enterprises Development (Amendment)
Bill, 2026 during the upcoming Monsoon Session of Parliament, in a move aimed
at improving the ease of doing business for micro, small and medium enterprises
(MSMEs) while strengthening safeguards against delayed payments.
The proposed
legislation is expected to be taken up for consideration and passage during the
session beginning next week.
The bill seeks to
align the Micro, Small and Medium Enterprises Development Act, 2006, with the
evolving MSME landscape by introducing trust-based regulations and creating a
more business-friendly ecosystem. The proposed amendments are designed to
simplify compliance and improve the overall regulatory framework for the
sector.
A key feature of the
bill is the strengthening of the mechanism for addressing delayed payments to
MSMEs, a long-standing concern that affects the liquidity and growth of small
businesses. It also proposes provisions for the enforcement of arbitral awards
in favour of micro and small enterprises, ensuring faster dispute resolution
and improved payment discipline.
Additionally, the
legislation aims to provide greater flexibility to states by enabling them to
decide the composition of the Micro and Small Enterprises Facilitation Council
(MSEFC). The move is expected to facilitate the establishment of more MSEFCs
across the country, enhancing institutional capacity to resolve disputes and
support MSMEs more effectively.
