MSMEs Seek Extended Payment Time Limit
ECONOMY & POLICY

MSMEs Seek Extended Payment Time Limit

Small and medium enterprises (SMEs) and micro, small, and medium enterprises (MSMEs) are advocating for an extension of the current 45-day payment rule to up to 180 days. This proposal aims to provide businesses with greater financial flexibility amidst economic uncertainties and operational challenges. The request comes as part of efforts to influence the new government to amend regulations in favour of accommodating longer payment cycles.

Currently, SMEs and MSMEs face cash flow issues due to delayed payments from larger companies and government agencies, impacting their operational efficiency and growth. Extending the payment window to 180 days is seen as a potential solution to mitigate these challenges, offering businesses more time to manage their finances and sustain operations effectively.

Advocates argue that a longer payment period would align with global practices and provide SMEs and MSMEs with breathing space to navigate economic fluctuations. They emphasise the need for a balanced approach that supports both the liquidity requirements of smaller businesses and the operational needs of larger entities.

The push for regulatory changes underscores the importance of fostering a conducive business environment that supports the growth and resilience of SMEs and MSMEs in India. By addressing payment delays through policy amendments, the government can potentially enhance the economic sustainability and competitiveness of these vital sectors.

Small and medium enterprises (SMEs) and micro, small, and medium enterprises (MSMEs) are advocating for an extension of the current 45-day payment rule to up to 180 days. This proposal aims to provide businesses with greater financial flexibility amidst economic uncertainties and operational challenges. The request comes as part of efforts to influence the new government to amend regulations in favour of accommodating longer payment cycles. Currently, SMEs and MSMEs face cash flow issues due to delayed payments from larger companies and government agencies, impacting their operational efficiency and growth. Extending the payment window to 180 days is seen as a potential solution to mitigate these challenges, offering businesses more time to manage their finances and sustain operations effectively. Advocates argue that a longer payment period would align with global practices and provide SMEs and MSMEs with breathing space to navigate economic fluctuations. They emphasise the need for a balanced approach that supports both the liquidity requirements of smaller businesses and the operational needs of larger entities. The push for regulatory changes underscores the importance of fostering a conducive business environment that supports the growth and resilience of SMEs and MSMEs in India. By addressing payment delays through policy amendments, the government can potentially enhance the economic sustainability and competitiveness of these vital sectors.

Next Story
Technology

We’re building robots that flow, not just move

Founded in 2021, Flo Mobility is reimagining construction automation with vision-AI robots designed for seamless movement through complex sites. In conversation with CW, Manesh Jain, Founder & CEO, discusses the company’s origin, its LiDAR-free tech stack, and expansion plans in the Middle East and US.What inspired the name Flo Mobility? Why ‘Flo’ and not ‘Flow’?When we started the company in 2021, our focus was on building autonomous navigation systems for robots. Since our work centred around robot movement, ‘mobility’ naturally became part of the name. We wanted to co..

Next Story
Real Estate

We’re committed to setting benchmarks in sustainable luxury living

From a landmark land acquisition in Boisar to ambitious launches across the Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Bengaluru and Pune, Birla Estates is driving future-ready growth with a strong focus on sustainability, partnerships and premium living, firmly anchored in its LifeDesigned® philosophy. K T Jithendran, Managing Director & CEO, outlines the company’s premium, sustainable growth playbook in conversation with PRATAP PADODE, Editor-in-Chief, CW. Excerpts:Birla Estates recently acquired a 70.92-acre land parcel in Boisar, Maharashtra, for..

Next Story
Infrastructure Urban

Mumbai’s land crunch and ageing homes call for structured renewal

Founded in 2022, Etonhurst Capital Partners is a real-estate fund management platform focused on the Indian market. As the firm achieves the first close of Rs 1.8 billion for its debut Rs 5 billion fund, Bamasish Paul, Co-founder, Managing Partner & CEO, discusses its sharp focus on redevelopment-driven value creation in Mumbai’s urban core with CW. Excerpts:Etonhurst Capital has achieved a significant milestone with the first close of Rs 1.8 billion for its Rs 5 billion fund. What factors contributed to this early success and how do you plan to attract further investments to r..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?