Goverment to introduce MSMEs Development (Amendment) bill to enhance ease of doing business
With an aim to enhance ease of doing business for micro, small and medium enterprises (MSMEs), the government is planning to introduce the MSMEs Development (Amendment) Bill, 2026 and put it to a vote in the upcoming Monsoon Session of Parliament. The Bill is seeking to align the MSMEs Development Act, 2006, with the changing MSME landscape.
The new bill also seeks to strengthen the mechanism for addressing delayed payments, provide for the enforcement of arbitral awards for micro and small units, and introduce flexibility and create enabling provisions for states to decide the composition of the Micro and Small Enterprises Facilitation Council (MSEFC), thereby forming more MSEFCs.
The MSMEs account for around 35.4% of manufacturing, around 48.58% of exports, and 31.1% of GDP in India. In Union Budget 2026-27, the government had introduced multiple measures to strengthen the MSME sector by enhancing financial support, promoting innovation, and easing regulatory compliance. Through these initiatives, the Government aims to improve the competitiveness of MSMEs in both domestic and global markets.
