New Fund Established to Support MSMEs Amidst Controversial 45-Day Payment Rule

The Indian government has established a fund to support Micro, Small, and Medium Enterprises (MSMEs) amidst the controversial 45-day payment rule. This rule mandates buyers to pay MSMEs within 45 days of accepting goods or services. Despite the rule, delayed payments continue to strain MSMEs' finances. The new fund aims to alleviate these challenges by providing financial assistance to MSMEs facing payment delays. This move is part of broader efforts to support the sector, which is crucial for economic growth and employment. Additionally, the government plans to strengthen the enforcement of the 45-day rule to ensure timely payments, thereby improving the financial health and sustainability of MSMEs.