Lok Sabha Question No. 4529 (UNSTARRED), answered on 2026-03-19
Subject: Trade Receivables Discounting System
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri B Y Raghavendra

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 4529 TO BE ANSWERED ON 19.03.2026

## TRADE RECEIVABLES DISCOUNTING SYSTEM

## 4529.   SHRI B Y RAGHAVENDRA:

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

- (a) the  progress  made  in  strengthening  the  Trade  Receivables  Discounting  System  (TREDS) platform  to  improve  timely  payments  and  liquidity  for  Micro,  Small  and  Medium  Enterprises (MSMEs), particularly after the recent Budget announcements;
- (b) the  details  of  the  number  of  MSMEs  onboarded,  total  invoice  value  financed  and  average reduction in payment cycles through TReDS during the last three financial years;
- (c) whether  the  Government  proposes  further  measures  to  encourage  wider  onboarding  of Central  Public  Sector  Enterprises  (CPSEs)  and  eligible  private  entities  and  to  expand  credit guarantee support under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) for invoice discounting;
- (d) the  details  of  MSMEs  registered  and  transactions  undertaken  on  TReDS,  State-wise including specific data relating to the State of Karnataka; and
- (e) the steps being taken to enhance awareness and participation of MSMEs in Karnataka under the platform?

## ANSWER

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

(a): Trade Receivables Discounting System (TReDS) are the digital platform, which facilitate the financing of trade receivables of Micro, Small and Medium Enterprises (MSMEs) through multiple financiers. In order to implement  the Budget announcements  2026,  to identify actionable recommendations, to operationalise the measures announced for strengthening TReDS ecosystem, the  Government  of  India  initiated  consultations  with  stakeholders  such  as  industry  Associations, Central Public Sector Enterprises, Financial Institutions and TReDS platforms. Further, Department of  Financial  Services  (DFS)  held  deliberations  with  stakeholders  to  examine  implementation pathways and policy enablers.

- (b): As informed by the Reserve Bank of India (RBI), during the last three financial years (202324  to  2025-2026,  till  28.02.2026),  a    total  of  1,46,179  Micro,  Small  and  Medium  Enterprises (MSMEs) have been  onboarded on TReDS Platforms. It is also informed that one enterprise may be on boarded on more than one platform. Total invoice value finance amounting to Rs. 6,77,072.67 Crore has been financed, during the same period.

As  informed  by  Receivables  Exchange  of  India  Limited  (RXIL)  a  study  namely  'Impact Assessment of the Trade Receivables Discounting System' from Indian Institute of Management, Bangalore and Ahmedabad University, was conducted. As per the report, it has been suggested that the participation on the TReDS platform reduces the receivable cycle of MSME suppliers by around 23 % points on average.

(c): To  expand  participation  on  TReDS  platform  for  more  liquidity  to  MSMEs  in  Budget Announcements 2026, the following four key measures have been announced:

- i. Mandate TReDS as the settlement platform for all purchases from MSMEs by CPSEs, setting a benchmark for other Corporate.
- ii. Introduce  CGTMSE-backed  credit  guarantee  support  for  invoice  discounting  on  TReDS platform.
- iii. Integrate  GeM  with  TReDS  to  enable  information-sharing  with  financiers  on  government MSME purchases, facilitating faster and cheaper credit.
- iv. Introduce  TReDS  receivables  as  asset-backed  securities  to  deepen  the  secondary  market, improve liquidity, and speed up settlements.

(d): As informed by TReDS Platforms, the number of MSMEs onboarded on TReDS in all States is around 1.98 lakh and the total invoice amount financed so far is Rs. 8.29 Lakh crore. The number of MSMEs onboarded on TReDS in the State of Karnataka is 13,365 and the total amount financed is Rs. 55,806.25 Crore. State-wise details are at Annexure-I.

(e): As informed by TReDS Platforms various steps have been taken to enhance awareness and increase participation of MSMEs on TReDS platform across India, including the State of Karnataka. Multiple  online  and  offline  awareness  programmes  are  being  conducted.  In  addition,  MSME associations are actively involved into awareness.

****

Annexure referred to in reply of the part (d) of Lok Sabha Unstarred Question No.4529 for answer on 19.03.2026.

| Sl. No.   | States/UTs                         | MSMEs on boarded   | Total Invoice value Financed (Rs. in Crore)   |
|-----------|------------------------------------|--------------------|-----------------------------------------------|
| 1.        | Andaman and Nicobar Islands        | 81                 | 77.56                                         |
| 2.        | Andhra Pradesh                     | 5,411              | 18,723.71                                     |
| 3.        | Arunachal Pradesh                  | 43                 | 38.98                                         |
| 4.        | Assam                              | 1,254              | 2,330.48                                      |
| 5.        | Bihar                              | 2,871              | 10,792.77                                     |
| 6.        | Chandigarh                         | 336                | 1,336.67                                      |
| 7.        | Chhattisgarh                       | 3,558              | 23,038.3                                      |
| 8.        | Dadra &Nagar Haveli and Daman& Diu | 600                | 5626.87                                       |
| 9.        | Delhi                              | 12,813             | 65,688.28                                     |
| 10.       | Goa                                | 637                | 1,934.11                                      |
| 11.       | Gujarat                            | 19,334             | 93,448.11                                     |
| 12.       | Haryana                            | 10,556             | 47,157.87                                     |
| 13.       | Himachal Pradesh                   | 974                | 4,325.01                                      |
| 14.       | Jammu &Kashmir                     | 724                | 1,770.66                                      |
| 15.       | Jharkhand                          | 3,172              | 19,726.46                                     |
| 16.       | Karnataka                          | 13,365             | 55,806.25                                     |
| 17.       | Kerala                             | 2,092              | 5,311.7                                       |
| 18.       | Ladakh                             | 14                 | 4                                             |
| 19.       | Madhya Pradesh                     | 7,997              | 22,125.47                                     |
| 20.       | Maharashtra                        | 35,127             | 1,62,410.6                                    |
| 21.       | Manipur                            | 39                 | 350.77                                        |
| 22.       | Meghalaya                          | 50                 | 299.35                                        |
| 23.       | Mizoram                            | 20                 | 52.03                                         |
| 24.       | Nagaland                           | 32                 | 49.9                                          |
| 25.       | Odisha                             | 3,531              | 14,491.91                                     |
| 26.       | Puducherry                         | 224                | 876.08                                        |
| 27.       | Punjab                             | 3,851              | 20,217.21                                     |
| 28.       | Rajasthan                          | 12,276             | 37,998.03                                     |
| 29.       | Sikkim                             | 52                 | 80.39                                         |
| 30.       | Tamil Nadu                         | 18,110             | 60,850.87                                     |
| 31.       | Telangana                          | 10,971             | 41,256.2                                      |
| 32.       | Tripura                            | 66                 | 44.38                                         |
| 33.       | Uttar Pradesh                      | 15,658             | 47,282.36                                     |
| 34.       | Uttarakhand                        | 1,821              | 8,461.79                                      |
| 35.       | West Bengal                        | 10,608             | 54,840.86                                     |
|           | Total                              | 1,98,268           | 8,28,825.99                                   |