New payment law to aid MSMES impacts India's textile tradeThe trade in India’s textile value chain has been disrupted for the last couple of weeks as an amendment in Companies Act 2023 regarding payment clause for MSME sector has come into effect. The Finance Act 2023 was introduced in the Parliament by finance minister Nirmala Sitharaman during her budget presentation for 2023-24. The latest disruption may further dampen sentiments in the trade of yarn and other products of textile sector. However, trade experts hope that this churning in trade may give short lived pain, but it will help MSME suppliers in the long run. “The amendment came into effect from current fiscal 2023-24. It means that income tax payers (business entities registered under Companies Act 2023) will have to face its repercussions in next assessing year 2024-25,” Kunal Mishra, a Chartered Accountant at a Mumbai based consulting firm Virtual CFO, said in an article.