New Delhi, 03 August (H.S.): The Rajya Sabha on Monday passed the Micro, Small and Medium Enterprises Development (Amendment) Bill, 2026, through a voice vote amid protests and slogan-shouting by Opposition members over Union Home Minister Amit Shah’s absence from Parliament during discussions related to police action against student protesters in Delhi.

Union Minister for Micro, Small and Medium Enterprises Jitan Ram Manjhi moved the Bill for passage in the Upper House. The legislation was introduced in the Rajya Sabha on July 28 and aims to strengthen the MSME ecosystem by improving cash flow for small businesses, reducing payment delays and simplifying regulatory procedures.

Speaking in the House, Manjhi said the proposed amendment focuses on addressing existing challenges faced by the MSME sector, reforming the administrative framework, improving business payments and promoting easier compliance for enterprises.

The Bill seeks to align the Micro, Small and Medium Enterprises Development Act, 2006, with the changing requirements of the MSME sector. It aims to enhance the ease of doing business and introduce trust-based regulations to support entrepreneurs and small enterprises.

The proposed legislation includes measures to strengthen mechanisms for resolving delayed payment issues faced by Micro and Small Enterprises (MSEs) and ensure better enforcement of arbitration awards. It also provides greater flexibility to state governments in deciding the composition of Micro and Small Enterprises Facilitation Councils (MSEFCs), enabling the creation of more such councils for faster dispute resolution.

The government said the amendments are designed to create a more supportive business environment for MSMEs by improving financial stability, reducing regulatory hurdles and ensuring quicker resolution of disputes.

The MSME sector plays a significant role in India’s economy by generating employment opportunities and contributing substantially to industrial growth. The latest amendments are aimed at making operations smoother for small businesses and strengthening their role in the country’s economic development.

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Hindusthan Samachar / Jun Sarkar