The Ministry of Micro, Small and Medium Enterprises (MSME) is looking to amend the MSME Development Act of 2006 to improve mechanisms for managing payment related disputes and better address the evolving needs of small businesses. In addition to amendments, the ministry is transforming the existing online portal used to track late payment issues for micro and small enterprises into a comprehensive dispute resolution platform.
According to ministry officials, the proposed changes aim to make the provisions of the original act more relevant for small businesses currently. Experts from fields like law and academia are providing inputs to design impactful amendments. The revamped act is expected to handle persisting problems like payment delays and identify new forms of support small firms require.
Separately, feedback from industry representatives highlights the need for state level collaboration on implementing policies and time bound dispute redressal to avoid undue costs and delays for aggrieved small businesses.
Union MSME Minister emphasized on fostering micro enterprises, particularly in rural India, as a way to elevate living standards and create job opportunities. Given that a large segment remains below the poverty line, developing grassroots industry can substantially aid development programs.
The ministry will focus on six priorities, that encompass facilitating finance access, boosting market linkages using digital platforms, upgrading technology and skills, promoting sectors like handloom and supporting women led enterprises.
An immediate initiative announced aims at onboarding half a million small businesses onto the Open Network for Digital Commerce platform. Assistance covers areas like cataloguing, order tracking and packaging support. A parallel campaign will create awareness among informal women entrepreneurs on formalizing their ventures.
Overall, the proposed changes are expected to establish a user friendly, online system for resolving payment conflicts faced by small scale traders and manufacturers, helping them pursue business without undue delays or hassles.
