Rajya Sabha Passes MSME Amendment Bill Amid Opposition Walkout

Union Minister Jitan Ram Manjhi moved the legislation, which seeks to overhaul the 2006 parent act to better reflect the current economic landscape. The government argues that these reforms are essential to bolster cash flows and simplify regulatory hurdles that have long hindered smaller firms. Central to the new law is a revised framework for managing delayed payments and a more robust mechanism for enforcing arbitral awards, providing a clearer legal path for vendors struggling with unpaid invoices.

Beyond payment recovery, the bill grants individual states greater latitude to determine the composition of the Micro and Small Enterprises Facilitation Councils. By allowing for more of these councils to be established, the government hopes to decentralize dispute resolution and decrease the backlog of cases facing small-scale entrepreneurs. While the session was marked by persistent sloganeering, the passage of the bill signals a shift toward what the ministry describes as a more trust-based regulatory environment for India’s secondary sector.