Indian Parliament Passes MSME Bill to End Payment Delays

The Parliament of India passed the Micro, Small and Medium Enterprises Development (Amendment) Bill, 2026, on Friday. The legislation, moved by Union Minister for MSME Jitan Ram Manjhi, follows a prior approval by the Rajya Sabha on Monday. The bill aims to eliminate payment delays and accelerate dispute resolution for small businesses.

Key provisions of the law require central public sector enterprises to clear invoices through the Trade Receivables Discounting System. For disputes that fail mediation, the bill mandates a referral to arbitration within 30 days, with final awards issued within 90 days of completed pleadings. If a case remains pending for more than six months, the law requires that at least 50 percent of the awarded amount be paid to the supplier.

The Lok Sabha passed the bill amid disruptions from opposition members. Protesting lawmakers demanded a statement from Union Home Minister Amit Shah regarding alleged police action during student demonstrations. In response, Lok Sabha Speaker Om Birla appealed for the House to function, while Parliamentary Affairs Minister Kiren Rijiju criticized the opposition's conduct.