Lok Sabha Clears MSME Amendment Bill Amid Opposition Protests, No Debate Held

The Lok Sabha on Friday passed the Micro, Small and Medium Enterprises Development (Amendment) Bill, 2026, without a debate, as Opposition members continued their protests over various issues.

The Bill, which was already approved by the Rajya Sabha on August 3, has now received Parliament’s clearance. It seeks to strengthen the administrative framework governing the MSME sector while addressing one of the biggest challenges faced by small businesses, delayed payments.

Among its key provisions are measures aimed at ensuring quicker resolution of disputes involving unpaid dues. The legislation proposes timelines for adjudication and mechanisms to facilitate the recovery of amounts covered by settlement agreements, potentially helping businesses manage cash-flow pressures more effectively.

A significant provision allows courts to direct payment of at least 50 per cent of the awarded amount to an MSME supplier if an application seeking to set aside an order remains pending for more than six months.

The government has highlighted the critical role of MSMEs in the Indian economy. The sector accounts for around 31 per cent of India’s GDP, 36 per cent of manufacturing output and 41 per cent of exports, making timely payments crucial for the survival and expansion of smaller enterprises.

MSME Minister Jitan Ram Manjhi had told the Rajya Sabha earlier that credit disbursed to MSMEs had risen sharply from Rs 10 lakh crore in 2014-15 to more than Rs 38.35 lakh crore, indicating a substantial increase in the flow of institutional finance to the sector.

The Lok Sabha proceedings, however, remained disrupted by Opposition protests. After the House met at noon following its first adjournment, the Bill was cleared during proceedings lasting only around 16 minutes. The Zero Hour was also affected by the protests.

The Lower House was subsequently adjourned until Monday, bringing the week’s proceedings to a close.