Rajya Sabha passes MSME Bill amid Opposition protests over police action

The Rajya Sabha on Monday passed the Micro, Small and Medium Enterprises Development (Amendment) Bill, 2026, amid continued protests by Opposition members. The Upper House functioned for only 19 minutes in the morning and was adjourned for the day soon after the Bill was passed in the afternoon.

The legislation seeks to amend the Micro, Small and Medium Enterprises Development Act, 2006. It provides for the establishment of a national digital platform for free and voluntary registration of micro, small and medium enterprises (MSMEs). The Bill also mandates all Central Public Sector Enterprises (CPSEs) to route invoice settlements through the Trade Receivables Discounting System (TReDS) for the procurement of goods and services from MSMEs, a move aimed at addressing liquidity concerns in the sector.

Union MSME Minister Jitan Ram Manjhi, while replying to the debate, said the government had extended strong support to the MSME sector and remained committed to its growth. He appealed to the Opposition to support the legislation, saying, "The objective is to balance the interests of all concerned parties while maintaining constitutional principles and the interests of businesses." Highlighting the sector's contribution, he said MSMEs contribute 31% to India's GDP, 36% to manufacturing output, and 41% to exports. He also noted that outstanding credit disbursed to MSMEs had increased to over ₹38.35 lakh crore from ₹10 lakh crore in 2014-15.

Opposition members, however, did not participate in the discussion on the Bill. They had been pressing for an apology from Union Home Minister Amit Shah over police action against protesting youth and students. Amendments moved by INDIA bloc members Ajay Maken, John Brittas, V. Sivadasan and A.A. Rahim were defeated by a voice vote.

The demand for an apology stems from a recent incident that has drawn criticism from Opposition parties. The issue has dominated parliamentary proceedings, with the Opposition insisting on a response from the Home Minister.

As protests continued, Rajya Sabha Chairman C.P. Radhakrishnan expressed disappointment over the disruptions. Some Left MPs displayed placards, drawing a warning from the Chairman that action would be taken if such conduct persisted. Leader of the Opposition Mallikarjun Kharge sought to speak, but the Chairman insisted that Opposition members first stop raising slogans and return to their seats. Although some complied, sloganeering continued, forcing the Chair to adjourn the House until 2 p.m. The House was later adjourned for the day after the Bill was passed.

The Trade Receivables Discounting System (TReDS) is an electronic platform for financing trade receivables of MSMEs. By mandating CPSEs to route their payments through TReDS, the government aims to ensure that MSMEs receive their payments without delays, thereby improving their cash flow and reducing the need for external borrowing. The platform also allows MSMEs to get invoices discounted at competitive rates.

The digital platform envisaged under the Bill is expected to simplify the registration process for MSMEs, making it free and voluntary. These measures are part of the government's broader efforts to strengthen the MSME sector, which is considered a key driver of employment and economic growth.

The monsoon session of Parliament has seen disruptions over various issues, and the passage of the Bill amid protests reflects the continuing friction between the government and the Opposition. The government maintains that the legislation balances the interests of all stakeholders while upholding constitutional principles. With this legislation, the government hopes to create a more enabling environment for small businesses, foster entrepreneurship, and boost manufacturing and exports.