New Delhi, Aug 03: Rajya Sabha has passed the Micro, Small and Medium Enterprises Development (Amendment) Bill 2026. The Bill aims to further amend the Micro, Small and Medium Enterprises Development Act, 2006. It aims to address payment delays and simplify dispute resolution. The Bill provides that every central public sector enterprise must settle all invoices for procurement of goods or services from MSMEs on the Trade Receivables Discounting System. As per the bill, if mediation fails in case of dispute, then, the reference for arbitration must be made within 30 days from the date of termination of mediation. It also adds that an award must be made within 90 days from the date of completion of pleadings. The Bill provides that if a case has been pending for more than six months, at least 50 per cent of the awarded amount must be paid to the supplier.
When the House met after the first adjournment at 2:00 PM, Minister of Micro, Small and Medium Enterprises Jitan Ram Manjhi moved the bill.
Replying to the debate on the Bill, Mr Manjhi said, the outstanding credit extended to the MSME sector has witnessed a significant increase in recent years. He informed that the credit, which stood at around 10 lakh crore rupees in 2014-15, has now risen to over 38 lakh crore rupees. The Minister said, this reflects that credit flow to MSME sector is continuously increasing.
Highlighting the role of the Credit Guarantee Fund Trust for Micro and Small Enterprises, the Minister said that the total credit guarantee extended to MSMEs between 2000 and 2022 was about three lakh 14 thousand crore rupees. However, in the last four years, from 2022-23 to 2025-26, this amount has surged to more than 10 lakh 47 thousand crore rupees. Mr Manjhi added that the government is committed to strengthening the MSME sector, enhancing its growth potential, and promoting business expansion.
Sumitra Balmik of BJP said that Prime Minister Narendra Modi has worked for the welfare and empowerment of the women, Scheduled Castes, Scheduled Tribes and the last person standing in the queue. She stated that prior to 2014, development largely remained confined to paperwork but under the leadership of Prime Minister Modi, the country has witnessed significant transformation. She added that the government’s focus is on bringing real change in society, promoting self-reliance, and empowering citizens. Ms Balmik said that this Bill has been brought with the objective of uplifting the poor and ensuring their meaningful integration into the nation’s growth and development.
Dola Sen of TMC said, MSMEs are the backbone of the country’s economy. She said the manufacturing sector alone contributes to 17 per cent of the nation’s GDP and MSMEs can address the country’s unemployment issue. Ms Sen alleged that the Government is not taking initiative to protect the MSME sector.
Santrupt Misra of BJD said the MSME sector contributes to 36 per cent of GDP and it is giving employment to around 30 crore people. He expressed concern that funds of around 8 to 10 lakh crore rupees of the MSME sector are stuck in the pipeline. Mr Misra stressed for concrete reforms rather than cosmetic solutions. Golla Baburao of YSRCP, M Thambidurai of AIADMK, Rajendra Jain of NCP, Masthan Rao Yadav Beedha of TDP, Ravi Chandra Vaddiraju of BRS, Pramod Boro of UPPL, and Ramji of BSP participated in the discussion among others.
After passing the Bill, the Rajya Sabha was adjourned for the day to meet again at 11:00 AM tomorrow.
