New Delhi: The Lok Sabha Friday passed the Micro, Small and Medium Enterprises Development (Amendment) Bill, 2026 that seeks to address delayed payments to MSMEs by introducing faster dispute resolution timelines, strengthening recovery mechanisms and improving liquidity for small businesses.
MSMEs contribute around 31% to the country's gross domestic product, 35% to manufacturing output and nearly 48% to merchandise exports. To improve cash flow for small businesses, the Bill mandates all central public sector enterprises to settle procurement invoices from MSMEs through the Trade Receivables Discounting System (TReDs).
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The new law empowers courts to order payment of at least 50% of the amount awarded to an MSME supplier if a challenge to the award remains pending for more than six months. It also enables the recovery of mediated settlement agreements and arbitral awards as arrears of land revenue, allowing state governments to recover dues where the defaulting buyer's assets are located.
The legislation, which amends the 2006 Act, has now been cleared by both houses of Parliament. It was passed in the Rajya Sabha on August 3.
The legislation noted that the MSME ecosystem has evolved significantly due to technological advancements, the growth of information technology-enabled systems and changes in the legal landscape. The amendments seek to align the law with these developments while creating a more enabling environment for MSMEs.
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Imports from China at $131 billion
India's import dependence continues to be shaped by the country's rapid economic growth, industrialisation, urbanisation, expanding manufacturing base, and deeper integration with global value chains, the government informed Rajya Sabha on Friday, in response to a query on China imports. Imports from China were $131.63 billion in FY26
Jump in FTA exports
During the April-June FY27 period, merchandise exports to free trade agreement (FTA) partner countries rose 25% to $43.14 billion from $34.65 billion in the same period a year ago.
The growth was faster than overall merchandise exports, which grew 16% in the first quarter of FY27 and the number of Certificates of Origin issued under trade agreements more than doubled over five years.
The share of FTA partner countries in India’s total exports increased to 33.4% in April-June of FY27 from 31.1% in the corresponding period of FY26.
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EV Chargins stations in country at 52,718
India currently has 52,718 electric vehicle charging stations according to data compiled by Bharat Heavy Electricals Limited, minister of state for heavy industries, Bhupathiraju Srinivasa Varma said.