45-Day Payment Policy for MSMEs Receives Endorsement from Industry Associations, FinMin Reveals

The Finance Ministry has endorsed a 45-day payment policy for MSMEs, aimed at ensuring faster payments to small and medium enterprises. This move has received support from various industry associations. The policy mandates that government departments and large corporations pay MSMEs within 45 days of invoicing, promoting timely cash flow for small businesses. The 45-day window is expected to provide much-needed relief to MSMEs, which have long faced challenges with delayed payments, impacting their operations and financial stability. This initiative is part of the government’s broader push to support MSMEs, which are seen as a key driver for economic growth, employment, and innovation in India.