The Rajya Sabha on Monday passed the Micro, Small and Medium Enterprises Development (Amendment) Bill, 2026 by voice vote amid noisy protests by Opposition members demanding the presence of Union Home Minister Amit Shah over the recent police action against student protesters in Delhi.
The Bill was moved for passage by Union Minister for Micro, Small and Medium Enterprises Jitan Ram Manjhi, who said the proposed legislation seeks to address long-standing challenges faced by the MSME sector by improving payment mechanisms, easing regulatory compliance and strengthening the overall business ecosystem.
Introduced in the Upper House on July 29, the Bill aims to align the MSME Development Act, 2006 with the evolving needs of the sector while promoting ease of doing business through trust-based regulations.
Speaking during the debate, Manjhi said the legislation is designed to improve cash flow for micro, small and medium enterprises by tackling delayed payments and simplifying the administrative framework.
The Bill also proposes strengthening the mechanism for addressing payment disputes and enabling the enforcement of arbitral awards in favour of micro and small enterprises.
Another key provision gives states greater flexibility in determining the composition of the Micro and Small Enterprises Facilitation Council (MSEFC), allowing them to establish more such councils for faster dispute resolution.
The passage of the Bill came amid sustained sloganeering by Opposition members, who continued to demand that Amit Shah address Parliament on allegations of excessive police action during the July 20 student protests in Delhi.
Despite the disruptions, the Chair proceeded with the legislative business, and the Bill was passed by voice vote.
The amendment is expected to streamline dispute resolution, improve payment discipline and create a more business-friendly regulatory environment for India's MSME sector, which plays a significant role in employment generation and economic growth.
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