The Delayed Payments Report 3.0 titled ‘MSME’s Access to Finance and Timely Payments’ by Global Alliance for Mass Entrepreneurship (GAME), Federation of Indian Micro and Small & Medium Enterprises (FISME), and C2FO was launched last evening in Delhi in the presence of Shri. Dr. V. Anantha Nageswaran, Chief Economic Advisor (CEA) to the Government of India and Shri. Ateesh Kumar Singh, Joint Secretary, Ministry of MSME, Government of India.
The third edition of the report provides a comprehensive update on the critical issue of delayed payments to Micro, Small, and Medium Enterprises (MSMEs) in India, quantifying the value locked in delayed receivables at ₹7.34 lakh crore (inflation-adjusted) as of March 2024, down from ₹8.27 lakh crore in 2023 and the peak estimate of ₹10.7 lakh crore in 2022. This sum remains a major challenge for India’s 6.4 crore MSMEs, representing over 4.6% of the country’s GVA and constraining working capital, credit access, and MSME growth.
Speaking at the event, Shri. Dr. V. Anantha Nageswaran, Chief Economic Advisor (CEA) to the Government of India, said, “As noted in the report, not only is the due amount of the delayed payments coming down but also there has been progress in the invoices that are discounted on the TReDS platform, going from nothing to 2.4 lakh crores etc. and getting more and more businesses to onboard themselves. At the same time, we do appreciate that the issue of delayed payments is an important one and the efforts cannot be slackened at this stage and we need to keep at it.”
Despite evidence of policy impact, the report warns that unequal bargaining power, lengthy and complex dispute resolution, and bottlenecks in enforcement remain embedded in the ecosystem. The smallest enterprises, especially micro units, are disproportionately affected, with average payment delays up to three times higher than those faced by larger firms.
Commenting on the report, Shri. Ateesh Kumar Singh, Joint Secretary, Ministry of MSME, Government of India, said, “On access to credit, the central way to describe the problem for MSMEs is adequate credit, timely credit and affordable credit. But to figure out adequate, timely and affordable credit, we need to do a very strong deep dive into the system because the gap is not just related to the credit side, the gap is in several shapes, sizes and elements.” He further elaborated, “There is a gender gap in respect to the credit, there are statutory gaps, there are regional gaps, there are sectoral gaps. It is a very important and certain requirement to move forward and find realistic, customized and actual solutions.”
The report calls for a coordinated, multi-pronged policy thrust. It urges strict enforcement of timelines and penalties through Section 43Bh, along with public disclosure of chronic defaulters. Scaling up TReDS as the mainstream platform for MSME payments, integrated with GST and Udyam data, is seen as critical. The report advocates establishing faster and final dispute resolution mechanisms by expanding and strengthening Facilitation Councils and enabling institutional arbitration. It emphasizes reforming the Special Mention Account (SMA) classification to prevent premature choking of viable small businesses. Moreover, expanding digital credit using GSTN and UPI data for accessible, cash-flow-based lending is necessary. Lastly, the Samadhaan portal needs realignment through automation, standard contracts, and transparent, real-time disclosure.
The report builds on continuous advocacy and evidence-based dialogue with GAME, FISME and other partners to help shape effective policies for MSME finance and payments.
Basant Kaur, Country Head, C2FO India added “While it is encouraging that delayed payments to MSMEs have reduced since our 2023 report with GAME, more must be done to achieve the vision of Viksit Bharat 2047. At C2FO, we believe technology-first solutions—TReDS, ULI, cash-flow based lending, a user-friendly SAMADHAN portal, and early-payment platforms offer the strongest potential to support MSMEs and drive growth. At the 2025 B20 and COP30 meetings, early-payment platforms like C2FO were recognised for their ability to unlock up to 1.1% of GDP and deliver a 3%–5% employment boost in small economies. We remain grateful to FISME and GAME for their partnership.”
Ramesh Dharmaji, Senior Advisor, GAME stated, “Access to finance for MSMEs is one of GAME’s focus areas because it is a strong pathway for the growth of MSMEs and job creators in our country. Our three reports chart the journey from highlighting the distress of delayed payments to evidencing positive impact through policy intervention. Yet, there is more to be done to end this chronic issue that affects millions of MSMEs and India’s economic growth. GAME remains committed to working with all stakeholders to accelerate solutions that enhance MSME cash flow and growth.”
Commenting on the report, Neeraj Kedia, Chairman of Banking and Finance Committee, FISME said, “The sustained reduction in delayed payments to MSMEs reflected in this report is an encouraging sign that policy efforts are beginning to bear fruit. However, the persistent challenges around bargaining power and dispute resolution require continued collaborative effort from all stakeholders to ensure that MSMEs receive payments promptly, enabling them to grow and contribute even more robustly to India’s economy.”
The first report, published in May 2022, was the first to comprehensively quantify the scale of delayed payments, estimating ₹10.7 lakh crore locked up annually. This report drew national attention to one of the most significant barriers to MSME growth and sustainability. The second report in late 2023 focused on solutions and showcased positive impacts from government reforms and new programs such as the Trade Receivables Electronic Discounting System (TReDS), amendments to the Income Tax Act, and enhanced dispute resolution mechanisms.
The Delayed Payments 3.0 report draws on extensive regional roundtable consultations with ecosystem stakeholders such as MSME sector associations, MSMEs bankers, and legal experts across India’s leading cities. It synthesizes on-ground experiences, case studies, and quantitative analysis—including data from the Samadhaan portal, highlighting application backlogs and payment delays.
The full report is available for download on the Global Alliance for Mass Entrepreneurship website, C2FO India and C2treds website.
