Parliament passed the Micro, Small and Medium Enterprises (MSME) Development (Amendment) Bill 2026 on August 7, 2026 — Lok Sabha passed it after Rajya Sabha had already cleared it. The Bill was moved by MSME Minister Jitan Ram Manjhi. Key provisions: (1) CPSEs (Central Public Sector Enterprises) must mandatorily settle all procurement invoices through the Trade Receivables Discounting System (TReDS) to improve MSME cash flows; (2) Dispute mediation to be completed within 90 days; (3) Courts must release at least 50% of disputed amounts to MSMEs if appeals extend beyond six months; (4) Minor defaults shift from criminal convictions to administrative warnings and monetary fines (₹1,000-₹1,00,000). India has 6.3 crore+ MSMEs contributing 30% to GDP and 45% of exports.
Polity
Parliament Passes MSME Development (Amendment) Bill 2026 — Mandates TReDS for CPSEs; 90-Day Dispute Mediation
Key Points
- Parliament passed the Micro, Small and Medium Enterprises (MSME) Development (Amendment) Bill 2026 on August 7, 2026 — Lok Sabha passed it after Rajya Sabha had already cleared it
- The Bill was moved by MSME Minister Jitan Ram Manjhi
- Key provisions: (1) CPSEs (Central Public Sector Enterprises) must mandatorily settle all procurement invoices through the Trade Receivables Discounting System (TReDS) to improve MSME cash flows; (2) Dispute mediation to be completed within 90 days; (3) Courts must release at least 50% of disputed amounts to MSMEs if appeals extend beyond six months; (4) Minor defaults shift from criminal convictions to administrative warnings and monetary fines (₹1,000-₹1,00,000)
- India has 6.3 crore+ MSMEs contributing 30% to GDP and 45% of exports
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• MSME Development (Amendment) Bill 2026: Parliament passes August 7; Minister: Jitan Ram Manjhi • CPSEs: mandatory TReDS for procurement invoices; 90-day dispute mediation; 50% release after 6 months • Minor defaults: criminal → administrative warnings + ₹1,000-₹1,00,000 fines • India MSMEs: 6.3 crore+; 30% GDP; 45% exports; 11 crore+ employment; MSME Development Act 2006
