MSME Act proposed to be amended to ensure expeditious payments

The Indian government plans to amend the MSME Development Act, 2006, to expedite payments to MSMEs with a more effective 45-day rule and online dispute resolution for overdue payments. Buyers will owe interest at three times the RBI's rate if they miss the payment window. Additionally, the amendments will incorporate energy efficiency, decarbonisation, and updated income tax provisions. Centres of excellence will be established to enhance MSME exports by addressing information gaps and promoting best practices through collaboration with the Department of Science & Technology and the Council of Scientific and Industrial Research.