Thursday, Aug 13, 2026 22:00 [IST]
Last Update: Wednesday, Aug 12, 2026 16:27 [IST]
GANGTOK,: The Sikkim government has welcomed the passage of the MSME Development (Amendment) Bill, 2026, by Parliament, saying the legislation will create a more supportive and business-friendly environment for Micro, Small and Medium Enterprises (MSMEs).
The MSMED Act, enacted in 2006, has completed 20 years. The amendment seeks to modernise the legal framework and support the growth of MSMEs amid rapid technological and digital changes.
The Bill was passed by the Lok Sabha on August 7 subsequent to its passing by the Rajya Sabha on August 3. The bill now awaits President of India's assent.
“Delayed payments are one of the biggest challenges faced by MSMEs, often affecting their cash flow, wages, working capital and ability to expand. The amendments aim to strengthen the mechanism for addressing such payment delays and make the resolution process more effective and efficient,” the State Commerce & Industries department said in a press release.
According to the release, key benefits for MSMEs includes faster recovery of delayed payments, stronger and more effective MSME Facilitation Councils, quicker resolution of payment-related disputes, greater use of digital systems for transparency and ease of doing business, improved access to working capital by reducing payment delays, lower regulatory burden and simpler business processes and stronger institutional support for MSMEs.
The department also informed that the Government of Sikkim has undertaken mass awareness and outreach activities to ensure that entrepreneurs, MSME associations and industry stakeholders are informed about the new provisions and their benefits.
The department has encouraged MSMEs across the State to make use of the MSME Facilitation Councils for addressing outstanding payment issues and securing their legitimate dues.
“MSMEs are the backbone of Sikkim’s local economy, contributing significantly to employment generation, entrepreneurship, innovation and inclusive economic growth. The Government of Sikkim remains committed to creating an ecosystem where MSMEs can operate with greater confidence, access timely payments and grow sustainably,” the release adds.
