In January, the finance ministry made an announcement about the new rule for MSMEs, and right after rule clauses came out, widespread protests started. While the finance ministry thought that the rule would help MSME businesses, the opposite happened, and even many MSME industries opposed the rule and objected to many flaws.
It has been more than 3 months, and the government has not clarified when they will implement the rule in the market. In between, many reputed news sources claimed that the government was discussing postponing the implementation of the rule. In contrast, other sources claimed the government would only enforce the rule on April 1, 2024.
During a time of confusion and uncertainty, the government presented an interim budget, the election commission announced dates for the general central election, and on March 16, finally, a model code of conduct was implemented all over India, restricting the government from making any announcements about any new scheme.
The uncertainty will continue for how long now? As per the source, the government might implement the rule in the first week of September 2024. A news source claimed the finance minister will implement the rule on April 1, 2024, and it is necessary for all people to follow the rules.
Many MSMEs are against the rule because it is not helping them but destroying their businesses fully. As people have to pay full payment to MSMEs within 45 days of product and service delivery, the big industries have no such rule, which means if someone buys from big industries, they can give them payment even after 45 days on mutual agreement. According to the MSME 45-day rule, businesses have to pay MSMEs within 45 days, and because of this, many businesses are starting to buy products and services from big industries because they can pay them even after 45 days without facing any consequences.
There are hardly 2 weeks until the 1st of April. We will get to know on the 1st of April only if the rule is implemented or the government is postponed, saving it for the after-elections.