Lok Sabha Question No. 6374 (UNSTARRED), answered on 2026-04-02
Subject: Policy to Protect Small Enterprises from Unfair Competition
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Harish Chandra Meena

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 6374 TO BE ANSWERED ON: 02.04.2026

## POLICY TO PROTECT SMALL ENTERPRISES FROM UNFAIR COMPETITION

6374.

SHRI HARISH CHANDRA MEENA:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

- (a) whether the Government proposes any special policy to protect small enterprises from unfair competition from big corporate groups and if so, the details thereof;
- (b) whether any specific schemes and assistance are being provided by the Government to ensure financial  stability  and  corporate  compliance  for  Micro,  Small  and  Medium  Enterprises  (MSMEs) operating in Rajasthan, if so, the details thereof;
- (c) the number of companies penalized under the Companies Act in the said State during the last three years; and
- (d) the number of small local units out of the said penalised companies?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE)

(a) to (d): The Government of India has taken various policy measures to create a level playing field for MSMEs and safeguard their interests, particularly in areas such as delayed payments, unfair competition, etc.

As  informed  by  the  Ministry  of  Corporate  Affairs,  as  per  Competition  Act,  2002,  the Competition Commission of India (CC) is empowered to prevent practices having adverse effect on competition, to promote and sustain competition in markets, to protect the interests of consumers and to ensure freedom of trade carried on by other participants in markets, in India, and for matters connected therewith or incidental thereto.

In addition, the following measures have also been taken to support small enterprises:

- i. Micro,  Small  and  Medium  Enterprises  Development  (MSMED)  Act,  2006,  mandates  that buyers  must  make  payments  to  MSMEs  within  45  days,  failing  which  compound  interest  is payable.
- ii. In order to promote timely payments to Micro and Small Enterprises, vide Finance Act, 2023, Section  43B  of  the  Income  Tax  Act  was  amended  to  provide  that  any  sum  payable  by  the assessee  to  a  Micro  or  Small  Enterprise  beyond  the  time  limit  specified  in  section  15  of  the MSMED Act, 2006, shall be allowed as a deduction only on actual payment.
- iii. Trade  Receivables  Discounting  System  (TReDS)  is an  RBI-regulated  digital  platform  that enables MSMEs to convert their trade receivables into finance thereby improving their liquidity and reducing dependence on large buyers.
- iv. CHAMPIONS Portal  is  an  online  grievance  redressal  mechanism  on  which  complaints  and grievances related to various issues, including unfair practices can be submitted.

To ensure financial stability and ease of compliance for MSMEs across the country, including Rajasthan,  the  Ministry  of  MSME  implements  Credit  Guarantee  Scheme  (CGS)  for  Micro  &  Small Enterprises  (MSEs),  Self  Reliant  India  (SRI)  Fund,  MSME  Champions  Scheme,  Raising  and Accelerating  MSME  Performance  (RAMP),  Prime  Minister's  Employment  Generation  Programme (PMEGP), etc. The details of the performance under these initiatives for financial support to MSMEs are given below:

| CGS- Guarantees approved: since inception in 2000 till 28.02.2026   | CGS- Guarantees approved: since inception in 2000 till 28.02.2026   | CGS- Guarantees approved: since inception in 2000 till 28.02.2026   |
|---------------------------------------------------------------------|---------------------------------------------------------------------|---------------------------------------------------------------------|
| Location                                                            | No. of guarantees approved                                          | Amount approved in Rs. Crore                                        |
| All over India                                                      | 1,39,39,040                                                         | 13,16,741                                                           |
| Rajasthan                                                           | 6,19,410                                                            | 59,092                                                              |

| Number of Microenterprises assisted under PMEGP from FY 2020-21 to FY 2024-25   | Number of Microenterprises assisted under PMEGP from FY 2020-21 to FY 2024-25   | Number of Microenterprises assisted under PMEGP from FY 2020-21 to FY 2024-25   | Number of Microenterprises assisted under PMEGP from FY 2020-21 to FY 2024-25   |
|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|
| Location                                                                        | No. of Units Assisted                                                           | MMSubsidy (Rs. Cr.)                                                             | Est. Employment                                                                 |
| All over India                                                                  | 4,11,627                                                                        | 13,184.51                                                                       | 32,93,016                                                                       |
| Rajasthan                                                                       | 10,002                                                                          | 489.06                                                                          | 80,016                                                                          |

| SRI Fund: since inception till 28.02.2026   | SRI Fund: since inception till 28.02.2026   | SRI Fund: since inception till 28.02.2026   |
|---------------------------------------------|---------------------------------------------|---------------------------------------------|
| Location                                    | No. of Investee Companies                   | Fund Investment (in Rs. Crore)              |
| All over India                              | 731                                         | 17,438.1                                    |
| Rajasthan                                   | 9                                           | 275.7                                       |

To enhance the competitiveness and sustainability of MSMEs, the Ministry launched MSMESustainable-  Zero  Defect  Zero  Effect  (ZED)  Certification  Scheme.  The  details  of  ZED  certified MSMEs are given below:

| ZED Certified MSMEs since launch (28.04.2022)   | ZED Certified MSMEs since launch (28.04.2022)   | ZED Certified MSMEs since launch (28.04.2022)   | ZED Certified MSMEs since launch (28.04.2022)   | ZED Certified MSMEs since launch (28.04.2022)   |
|-------------------------------------------------|-------------------------------------------------|-------------------------------------------------|-------------------------------------------------|-------------------------------------------------|
| Location                                        | 2022-23                                         | 2023-24                                         | 2024-25                                         | 2025-26 (till date)                             |
| All over India                                  | 3,143                                           | 1,76,341                                        | 1,04,976                                        | 2,42,679                                        |
| Rajasthan                                       | 94                                              | 8299                                            | 8683                                            | 11213                                           |

The information regarding the number of companies penalized under the Companies Act, 2013 is maintained by the Ministry of Corporate Affairs.

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