Nirmala Sitharaman Urges Private Sector to Settle MSME Payments Within 45 Days

Union Finance Minister Nirmala Sitharaman has urged the private sector to settle payments owed to micro, small, and medium enterprises (MSMEs) within 45 days. Acknowledging that both central and state governments, along with state-owned enterprises, have pending dues to MSMEs, she emphasised that private businesses also owe money to these small firms for goods and services received.

During a recent meeting with major business leaders, Sitharaman stressed the importance of timely payments to smaller businesses, which are crucial to the economy. "The private sector and industry should commit to make the payments in 45 days along with the books of accounts filed with the Registrar of Companies which make mention of outstanding dues. The private sector should also be ahead in this issue," she stated at an event organised by Laghu Udyog Bharati, an RSS-affiliated organisation focused on small businesses.

The central government is also planning measures to address this issue by ensuring that its departments and public sector enterprises pay small businesses within 90 days. Sitharaman called on state governments and their public sector enterprises to clear dues promptly as well. She noted that her colleagues frequently discuss the problem of accumulating MSME dues.

Sitharaman highlighted government initiatives like the TREDS (Trade Receivables Discounting System) platform and the Samadhan portal as part of efforts to support MSMEs. These platforms aim to facilitate quicker payment processes for small businesses.

The Finance Minister's appeal underscores the critical role that timely payments play in sustaining MSMEs, which are often described as the backbone of India's economy. By addressing outstanding dues, both private and public sectors can help ensure the financial health and stability of these enterprises.