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Resource centre on India's rural distress
 
 

How to tackle delayed payments to MSMEs -Bhaven Shah and Garv Sultania

-The Hindu Business Line

Faster and more effective, Online Dispute Resolution has gained wide recognition from the judiciary, govt and business entities

Contributing 29 per cent to India’s GDP and 40 per cent of India’s exports, 6.3 crore micro, small and medium enterprises (MSMEs) provide employment to 21 per cent of India’s workforce translating into 80 million jobs.

However, MSMEs continue to face serious issues and disputes relating to delayed payments that choke cash flows and push many towards the brink of insolvency. A recent report by the Global Alliance for Mass Entrepreneurship (GAME), Dun & Bradstreet, and Omidyar Network India reveals that 80 per cent of the annual delayed payments amounting to a whopping 8.73 lakh crore were owed to micro and small suppliers. Interestingly, 72.4 per cent of such instances can be avoided provided there is an effective and efficient way to tackle the menace of delayed payments.

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