The Micro, Small and Medium Enterprises Development (Amendment) Act, 2026

The Micro, Small and Medium Enterprises Development (Amendment) Act, 2026 received Presidential assent on August 13, 2026. The amendments, inter alia, provide for updated classification of Micro, Small and Medium Enterprises, mandatory settlement of receivables through the Trade Receivables Discounting System (TReDS) for specified entities, a revised framework for Micro and Small Enterprises Facilitation Councils (MSEFCs), strengthened dispute resolution mechanisms and decriminalisation of certain offences. Companies having MSME-related transactions should evaluate the applicability and operational impact of the amended framework.