India has expanded its institutional support for small enterprises by establishing 161 Micro and Small Enterprises Facilitation Councils (MSEFCs) across states and Union Territories. Announced by the Ministry of MSME, the move aims to tackle one of the sector’s biggest challenges: delayed payments. With lakhs of micro and small units struggling with cash flow issues, the government is pushing for faster and more transparent dispute settlements.
Strengthening the Framework for Timely Payments
Delayed payments continue to choke the working capital of MSMEs, often forcing them into debt or operational slowdown. To address this, the government previously launched the SAMADHAAN portal, a monitoring platform for tracking outstanding dues from buyers.
The newly operational MSEFCs serve as specialised quasi-judicial bodies dedicated to settling such disputes. To make the system more efficient and reduce paperwork, the Ministry has also introduced an Online Dispute Resolution (ODR) portal from June 2025. This enables digital case filing, virtual hearings and quicker settlements, significantly reducing the time MSMEs spend navigating bureaucratic processes.
Expanded Financial Support for Growth and Stability
Beyond dispute resolution, the government has rolled out multiple initiatives to ease credit access and support expansion:
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Credit Guarantee Scheme (CGS):
A fresh allocation of ₹9,000 crore enhances credit availability by ₹2 lakh crore, with coverage increased to 90%. Loan ceilings have also doubled from ₹5 crore to ₹10 crore, effective April 2025. -
PM Vishwakarma Scheme:
Loans of up to ₹3 lakh at subsidised rates continue to support artisans in 18 traditional trades. -
Self-Reliant India (SRI) Fund:
A blended fund structure mobilises ₹50,000 crore in equity financing to strengthen MSME balance sheets. -
PMEGP Subsidies:
Manufacturing projects up to ₹50 lakh and services up to ₹20 lakh are eligible for subsidies of up to 35%, boosting micro-enterprise creation.
Driving Digitalisation and Ease of Doing Business
To help MSMEs modernise, the MSME Champions Scheme and the GIFT Scheme promote technology upgrades, greener operations and digital adoption. The regulatory environment is also being streamlined through:
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TReDS expansion: Lowered turnover threshold (₹250 crore) encourages more buyers to participate in invoice discounting.
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Udyam Registration Portal: A fully paperless process for onboarding MSMEs.
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Udyam Assist Platform: Helps informal micro-enterprises access formal credit.
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National Single Window System: Consolidates multiple approvals on one interface.
Together, these interventions indicate a clear policy shift toward faster payments, easier financing and stronger digital infrastructure—a combination expected to relieve long-standing pain points and improve resilience across India’s MSME sector.