India's ODR portal gets small firms paid

Micro and small enterprises in India are leveraging the new MSME ODR portal to address delayed payments from buyers. This online dispute resolution platform, launched in December 2023 and fully operational since October 2025, enables suppliers to file claims against defaulting buyers electronically. The process includes online filing, virtual conciliation, and hearings, significantly reducing the traditional hurdles of paperwork and travel.

Early results from Telangana demonstrate substantial benefits, with businesses filing claims in less than an hour and incurring minimal costs, often without needing a lawyer. A key observation is that a formal notice from a Micro and Small Enterprises Facilitation Council (MSEFC) effectively prompts buyers who had ignored previous communications. This new system aims to facilitate settlements that preserve ongoing business relationships.

Initiated under the RAMP program and supported by the World Bank, the ODR portal aims to make delayed payment recovery a standard business practice. As of August 2026, over 800 cases were filed in Telangana, with about 85 resolved, indicating the platform's recent implementation and the time needed for dispute resolution. The scheme is scheduled to run through 2026-27, testing its capacity for timely dispute disposal and encouraging wider adoption through increased awareness.