The Micro, Small and Medium Enterprises Development (Amendment) Bill, passed by Parliament

The Micro, Small and Medium Enterprises Development (Amendment) Bill, 2026, was passed by the Lok Sabha on 7th August, 2026, subsequent to its passing by the Rajya Sabha on 3rd August, 2026. The Micro, Small and Medium Enterprises Development Act (MSMED Act) was notified in 2006 and has completed 20 years of its enactment. Over the years, the MSME landscape has witnessed rapid changes due to technological advancements, emergence of IT enabled systems and changing legal landscape, which required that the MSMED Act be amended to facilitate growth of MSMEs. The number of MSMEs registered on Udyam have increased from 1.65 crore as on 01.04.2023 to 9.16 crore now. MSME sector provides employment to over 40 crore people and is considered to be the backbone of Indian economy.

The amendments in the MSMED Act have been done to strengthen the legal framework governing the development of MSME sector, improving the ease of doing business, creating an enabling business environment through decriminalisation, providing institutional mechanisms for promotion of MSMEs and addressing delayed payment issues faced by the Micro and Small Enterprises.(UPDATED ON 7TH AUGUST 2026)