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MSME Payment Woes Deepen: Complaint Resolution Hits Record Low

8 Jun

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Summary

MSME payment delays are a critical concern for businesses.
Complaint disposal rates have significantly fallen since 2025-26.
Maharashtra and Delhi are leading states with overdue payments.

MSME Payment Woes Deepen: Complaint Resolution Hits Record Low

Delayed payments remain a significant hurdle for India's Micro, Small, and Medium Enterprises (MSMEs), with complaint resolution rates hitting an alarming low. Finance Minister Nirmala Sitharaman has previously highlighted this issue and stressed the need for tailored credit solutions for the sector.

Data from the MSME Samadhaan portal indicates a stark decline in the disposal of delayed payment complaints. While about 33% of complaints were resolved in FY21, this rate drastically dropped to a mere 4.07% by FY26. This suggests a worsening situation for MSMEs struggling to receive timely payments, with private firms and institutions in states like Maharashtra and Delhi reportedly among the top defaulters.

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