Rajya Sabha passes MSME Development (Amendment) Bill
MSME Bill Passes by voice vote, amid opposition uproar
Synopsis
The Rajya Sabha passed the MSME Development (Amendment) Bill by voice vote, amid opposition protests and sloganeering.
AdvertisementRajya Sabha clears MSME Bill
The Rajya Sabha passed the Micro, Small and Medium Enterprises (MSME) Development (Amendment) Bill, 2026, by voice vote without a formal debate and discussion, as the House witnessed continuous sloganeering and protests from opposition MPs over the lack of presence of Union Home Minister Amit Shah in the Parliament House and over the police action on student protesters in New Delhi. The Bill was introduced by Union Minister for Micro, Small and Medium Enterprise Jitan Ram Manjhi in the Rajya Sabha on July 28, 2026.
Major Changes Introduced in the Bill
1. The Legislation seeks to facilitate the promotion and development of Micro, Small, and Medium Enterprises (MSMEs). Improving the cash flow and speed up the resolution of payment disputes for small businesses.
Advertisement2. The Bill proposes a national digital platform for free and voluntary registration of MSMEs.
3. State Governments may establish their own digital platform to assist and enable enterprises to access government benefits.
4. Curb delayed payments and liquidity constraints.
5. Central Public Sector Enterprises (CPSE), mandatory invoices for goods and services via authorised channels through the Trade Receivables Discounting System (TReDS) platform.
Advertisement6. Timelines and strengthen mediation and arbitration so that payment disputes are resolved quickly.
7. Replaces minor procedural or reporting defaults with scaled financial penalties instead of criminal prosecution
Jitan Ram Manjhi Remarks on MSME Bill Reforms
Jitan Ram Manjhi said, “This bill clearly indicates that the objective is to address the existing challenges of the MSME sector, reform the administrative framework, ease business payments, and promote regulatory compliance.”
What is MSME?
Micro, Small and Medium Enterprises are based on the Investment in Plant, machinery, or Equipment value (excluding land and building) and Annual Turnover.
Micro Enterprise: Investment in plant and machinery or equipment does not exceed one crore rupees, and turnover does not exceed five crore.
Small Enterprise: Investment in Plant and Machinery or Equipment does not exceed ten crore rupees, and turnover does not exceed fifty crore rupees.
Medium Enterprises: Investment in Plant and Machinery or Equipment does not exceed fifty crore rupees, and turnover does not exceed two hundred and fifty crore rupees.
Opposition Protests and Next Steps
The Bill passed amid opposition protests demanding accountability from PM Modi and HM Amit Shah over excessive police deployment at Jantar Mantar, protesters, and the Ram Temple theft. Opposition gathered near the Well of the House, raising slogans as the Bill was discussed and passed via voice vote.
With the Rajya Sabha’s approval, the Bill now moves to the Lok Sabha for its consideration and final passage before reaching the President for assent.
