President of India Launches ODR Portal on MSME Day 2025 to Resolve Payment Disputes

New Delhi, June 27, 2025 — India commemorated MSME Day 2025 with the official launch of the Online Dispute Resolution (ODR) Portal, a significant step to directly address the chronic issue of delayed payments faced by micro and small enterprises. The platform, introduced by the President of India, offers a swift, remote, and affordable mechanism for resolving disputes, marking a watershed moment for over 6.3 crore MSMEs in India.

Developed by the Ministry of MSME, the ODR portal features a two-tiered approach. The first stage—Pre-MSEFC—facilitates voluntary out-of-court settlements through guided digital pathways or unmanned negotiation. Disputes that remain unresolved then advance to the MSEFC stage, a statutory process under the MSMED Act, 2006, enabling mediation, conciliation, or arbitration.

This initiative aligns with the theme of MSME Day 2025: “Enhancing the Role of MSMEs as Drivers of Sustainable Growth and Innovation.” With MSMEs contributing nearly 30% to India’s GDP and over 45% to exports, the launch of a resolution-focused portal is set to unlock trapped working capital and strengthen the sector’s contribution to economic growth.

While previous tools like the Samadhan Portal (launched in 2017) and its 2020 extension focused on tracking payment delays, the ODR platform goes further by enabling actual dispute resolution from booking to settlement—completely online—with secure document uploads, virtual hearings, and reduced procedural burden.

In tandem with the portal’s launch, the government will implement revised MSME classification thresholds from April 1, 2025. Under new regulations, micro-enterprises can invest up to ₹2.5 crore and turnover up to ₹10 crore; small enterprises invest up to ₹25 crore with ₹100 crore turnover; medium enterprises invest up to ₹125 crore with ₹500 crore turnover. These changes, announced in the Union Budget, aim to broaden benefits and credit access for a larger number of enterprises.

By combining digital dispute resolution, inclusive registration norms, and formal support mechanisms, India is reinforcing its commitment to a seamless, robust, and supportive environment for MSMEs. As MSMEs continue to drive grassroots innovation, employment, and economic inclusion, the ODR portal stands out as a game-changer—delivering fairness, efficiency, and access to justice in the world of small business.

Disclaimer: This summary is for informational purposes and readers should verify specific details through official reports or consult industry professionals for comprehensive insights.