Last week, Parliament passed the Micro, Small and Medium Enterprises Development (Amendment) Bill, 2026, nearly 20 years after the enactment of the MSMED Act.

The Bill seeks to strengthen the legal framework governing MSMEs, improve ease of doing business, provide institutional mechanisms for sectoral development and address delayed payments faced by micro and small enterprises among many other things.

While experts have broadly welcomed the Bill, they caution that its effective implementation will decide whether the reform delivers meaningful benefits to the country’s smaller businesses.

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