MSMEs file 47k claims for dues of Rs 8,025 crore

Over 47,000 applications were filed by small businesses to recover dues worth ₹8,024.9 crore in FY25, according to the data from MSME Samadhaan Portal, a government-run platform for monitoring delayed payments.

The number of applications surged 94.1% to 47,587 in FY25 compared to 24,519 in FY20. In contrast, total dues increased by 25.7% in the same period.

Although FY25 saw the highest number of applications filed, the total dues claimed were the second highest after FY21.

Data for FY25 is as of 6 pm on March 31.

These applications were submitted by micro, small and medium enterprises (MSMEs) against various entities, including the central government, state government, proprietors, central and state public sector undertakings (PSUs).

Since the portal's launch in October 2017, over 2 lakh applications have been filed by small businesses as of March 31 seeking recovery of dues amounting to ₹50,155.7 crore.

As of March 31, state governments accounted for the highest outstanding dues, with 12,373 applications totalling ₹6,713.8 crore. Central PSUs followed with 7,331 applications involving ₹5,660.9 crore in pending payments. Proprietors ranked third with ₹4,518.1 crore pending.

The highest number of applications were filed against proprietors - 59,508.

The MSME sector contributed 29.6% to India's gross domestic product (GDP) in 2023-24, slightly lower than the 30.3% recorded in the year before, according to a Lok Sabha reply.

Employment in the MSME continues to grow. In 2024-25 (up to March 15), such enterprises employed 79.2 million people, an increase of 7% from 74 million in 2023-24.

In 2021-22, a total of 34.9 million people were hired.

Under the MSME Development Act, buyers must settle payments with MSMEs within 45 days of purchase. Failure to do so incurs an interest penalty at three times the prevailing bank rate on the outstanding amount.

The Micro and Small Enterprises Facilitation Council (MSEFC) settles disputes between small businesses and buyers.

So far, central PSUs have settled the highest amount – Rs 1,127.7 crore. State governments have cleared Rs 956.4 crore, followed by proprietors (Rs 518.7 crore), and MSME units (Rs 499.3 crore).

Meanwhile, the number of MSMEs shutting down has surged. According to the Lok Sabha reply, a total of 37,467 MSMEs were shut down in 2024-25 as of March 15, nearly doubling from 19,828 in 2023-24.