Delayed Payments To MSMEs Decline From Rs 10 Lakh Cr To Rs 7 Lakh Cr, But Challenges Persist: GAME-FISME Report

ENA MSME 2025-11-26 17:19:10 New Delhi, Nov 26 (KNN) The value of delayed payments owed to Micro, Small and Medium Enterprises (MSMEs) has fallen to Rs 7.34 lakh crore as of March 2024, according to the Delayed Payments Report 3.0, MSMEs Access to Finance and Timely Payments, released by the Global Alliance for Mass Entrepreneurship (GAME), the Federation of Indian Micro and Small & Medium Enterprises (FISME), and C2FO. Commenting on the report, Neeraj Kedia, Chairman, Banking and Finance Committee, FISME, said, The sustained reduction in delayed payments to MSMEs highlighted in this report is an encouraging sign that policy efforts are beginning to bear fruit. However, persistent challenges around bargaining power and dispute resolution require continued collaboration from all stakeholders to ensure MSMEs receive timely payments, enabling them to grow and contribute more robustly to Indias economy, he added. The report, launched in the presence of Chief Economic Advisor (CEA) Dr. V. Anantha Nageswaran and Ministry of MSME Joint Secretary Ateesh Kumar Singh, marks the third edition of the flagship study. The quantum of delayed receivables—down from Rs 8.27 lakh crore in 2023 and a peak of Rs 10.7 lakh crore in 2022—indicates the gradual impact of recent policy measures. However, the report notes that the outstanding sum still accounts for over 4.6 percent of Indias Gross Value Added (GVA), posing significant constraints on working capital and credit access for the countrys 6.4 crore MSMEs. Speaking at the launch, Dr. Nageswaran said, As noted in the report, not only is the due amount of delayed payments coming down, but there has also been significant progress in invoices discounted on the TReDS platform, rising from zero to Rs 2.4 lakh crore, with more businesses onboarding themselves. At the same time, we recognise that delayed payments remain a critical issue. Efforts cannot be slackened at this stage, and we need to continue addressing it, he added. Despite signs of improvement, the report highlights persistent structural challenges such as unequal bargaining power, slow dispute resolution, and weak enforcement. Micro enterprises remain the most affected, with payment delays reportedly three times longer than those experienced by larger firms. The Joint Secretary noted, When it comes to access to credit, the challenge for MSMEs lies in ensuring credit that is adequate, timely and affordable. To achieve this, we need a thorough, systemic review, because the gaps are not limited to credit alone—they exist in multiple forms and dimensions. He further elaborated, There are gender gaps, statutory gaps, regional gaps, and sectoral gaps. It is crucial to identify realistic, customised solutions to address these issues and move forward effectively. The report recommends a coordinated policy push, including stricter enforcement under Section 43Bh of the Income Tax Act with public disclosure of chronic defaulters, scaling up TReDS as the primary platform for MSME payments through integration with GST and Udyam data, and strengthening Facilitation Councils for faster dispute resolution. It also calls for reforms to Special Mention Account (SMA) norms to avoid early stress classification, expansion of digital credit using GSTN and UPI data, and enhanced automation and transparency for the Samadhaan portal. Ramesh Dharmaji, Senior Advisor, GAME, stated, Access to finance for MSMEs is one of GAMEs focus areas, as it provides a strong pathway for the growth of MSMEs and job creation in our country. GAME remains committed to working with all stakeholders to accelerate solutions that enhance MSME cash flow and growth. Basant Kaur, Country Head, C2FO India, added, While it is encouraging that delayed payments to MSMEs have declined since our 2023 report with GAME, more needs to be done to achieve the vision of Viksit Bharat 2047. She added, At C2FO, we believe technology-first solutions—such as TReDS, ULI, cash-flow-based lending, the user-friendly SAMADHAN portal, and early-payment platforms—offer the greatest potential to support MSMEs and drive growth. The report builds on earlier editions published in 2022 and 2023, which first quantified the scale of delayed payments and evaluated the impact of emerging solutions. The latest edition draws from extensive consultations with MSME associations, lenders, and legal experts, as well as analysis of Samadhaan portal data on disputes and delays. (KNN Bureau) 44209 https://knnindia.co.in/news/newsdetails/msme/delayed-payments-to-msmes-decline-from-rs-10-lakh-cr-to-rs-7-lakh-cr-but-challenges-persist-game-fisme-report 2025-11-26 17:19:10 knnindia.co.in Delayed Payments To MSMEs Decline From Rs 10 Lakh Cr To Rs 7 Lakh Cr, But Challenges Persist: GAME-FISME Report