Micro, Small and Medium Enterprises Development (Amendment) Bill, 2026 passed by Parliament
The Micro, Small and Medium Enterprises Development (Amendment) Bill, 2026 was passed by Lok Sabha on 7 August 2026 after Rajya Sabha approval on 3 August 2026, amending the MSMED Act for delayed-payment and dispute-resolution reforms.
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What happened
Parliament passed the Micro, Small and Medium Enterprises Development (Amendment) Bill, 2026. Rajya Sabha passed the Bill on 3 August 2026 and Lok Sabha passed it on 7 August 2026.
Background and earlier position
The Micro, Small and Medium Enterprises Development Act (MSMED Act) was notified in 2006 and reached 20 years of enactment. The government stated that rapid changes in the MSME environment—technology, IT-enabled systems, and changes in the legal landscape—required amendments to strengthen the legal framework for MSME growth.
What changed now (salient features)
The amendments cover classification of MSMEs, Udyam registration rules, dispute resolution for delayed payments, enforcement and recovery of awards and settlements, faster invoice settlement mechanisms, flexibility for State-level institutional arrangements, and decriminalisation through graded civil penalties.
