The bill seeks to amend the Micro, Small and Medium Enterprises Development Act, 2006.
- Aim: Address delayed payments, which severely affect liquidity, working capital and business continuity; simplify dispute resolution and improve ease of doing business.
Key provisions of the MSME (Amendment) Bill 2026
| Provision | MSME (Amendment) Bill 2026 | MSME Act 2006 |
| Classification of MSMEs | Removes fixed investment thresholds, empowers the central government to classify MSMEs based on investment (in plant and machinery or equipment) and turnover. | Classifies enterprises based on investment in plant and machinery (for manufacturing) or equipment (for services), with specific investment thresholds. |
| Registration | Voluntary for all MSMEs, through a national digital platform to be notified; state governments may also notify a digital platform. | Mandatory for intending medium manufacturing enterprises, but discretionary for other MSMEs. |
| Dispute Resolution |
|
|
| Disputes on Awards | If a case is pending for over six months, at least 50% of the awarded amount must be paid to the supplier. | On application, a Court may set aside an order/award of the Council after depositing 75% of the award. |
Other Key Provisions:
| ||
