New Delhi, July 28 -- Smaller businesses struggling with delayed payments have reason for hope, with a new bill aiming to reduce delays and speed up dispute resolution.

The Centre on Tuesday introduced the Micro, Small and Medium Enterprises Development (Amendment) Bill, 2026, which also proposes to remove minor penalties for MSMEs. Mint reported on 23 June that the ministry was planning to amend the MSME Development Act 2006 in the monsoon session of the parliament, with changes geared towards better dispute resolution and removal of minor penalties.

"The original MSME Development Act was made in 2006. That is why there is a need to make additions and improvements to the law," Union MSME minister Jitan Ram Manjhi said while presenting ...