India's delayed MSME payments dropped to ₹7.34 lakh crore by March 2024, driven by policy reforms and increased invoice discounting.

Delayed payments to India’s MSMEs fell to ₹7.34 lakh crore by March 2024, down from ₹10.7 lakh crore in 2022, according to a report by GAME, FISME, and C2FO. The decline reflects progress from policy measures and increased invoice discounting on the TReDS platform, which reached ₹2.4 lakh crore. Despite this, challenges remain, including unequal bargaining power, slow dispute resolution, and credit access gaps. The report urges stricter enforcement of payment timelines, public disclosure of defaulters, integration of TReDS with GST and Udyam data, and modernization of the Samadhaan portal. It also recommends reforms to SMA classifications and expanded digital credit using GSTN and UPI data to support long-term financial inclusion and India’s economic growth.