Driving MSME Growth: Timely Payments from Big Companies Crucial

At Tuesday's CII Annual Business Summit, Chief Economic Advisor V Anantha Nageswaran emphasized the necessity for large companies to expedite payments to micro and small enterprises (MSMEs). He pointed out that timely payment would alleviate the working capital challenges MSMEs face, ultimately fostering a thriving economic environment.

Nageswaran stressed that larger businesses should accept invoices from MSMEs promptly, a move that could reverse the current dynamic where MSMEs often inadvertently finance larger businesses due to delayed payments. These small enterprises contend with higher capital costs, making swift payment essential.

Highlighting MSMEs' critical role in innovation and global market integration, Nageswaran called for regulatory simplification. He urged policymakers to create a transparent, trust-based environment conducive to MSME growth, essential for scaling and competing internationally.

(With inputs from agencies.)