• ¨     The Lok Sabha passed the Micro, Small and Medium Enterprises Development (Amendment) Bill, 2026 on August 7, 2026, during a session that lasted only 16 minutes.

    ¨     The Rajya Sabha had approved the same Bill via a voice vote on August 3, 2026.

    ¨     This Bill addresses issues related to delayed payments, dispute resolution, and digital invoice settlement within the MSME sector.

    ¨     The Micro, Small and Medium Enterprises Development Act, 2006 provides the statutory framework for the MSME sector in India.

    ¨     MSMEs are classified based on investment and turnover. A revised classification system was implemented in 2020.

    ¨     The MSME sector comprises both manufacturing and service enterprises.

    ¨  Under the Bill, all Central Public Sector Enterprises (CPSEs) are required to submit and settle procurement invoices related to MSMEs through the Trade Receivables Discounting System (TReDS).

    ¨     TReDS is a digital platform regulated by the Reserve Bank of India that facilitates the financing of trade receivables.