Pay Your Suppliers. It Is the Cheapest Policy India Has.

The Real Pain Point for Small Suppliers

Every year there are new announcements for small business: a scheme here, a subsidy there. Most are useful. But ask any supplier what hurts most, and they will say the invoice that is sixty, ninety, one hundred and twenty days late.

Late payment is a tax on the smallest party in the chain. It forces borrowing, delays wages and discourages growth. Platforms like TReDS offer relief, and recent policy has pushed public-sector buyers toward them. But the cultural fix is simpler: large buyers can choose to pay on time.

What Would Actually Help

What would help: - Disclose payment days in annual reports (the law already requires reporting of dues to micro and small enterprises; compliance should be checked). - Treat supplier payment performance as a board-level metric. - Make onboarding to TReDS routine for any buyer above a threshold.

“Late payment is a tax on the smallest party in the chain.”

The Counter-Argument and Takeaway

The counter-argument: Large buyers argue that their own receivables are slow and that longer terms are a way to manage cash. This is fair, but it moves the burden down the chain to the party least able to carry it.

Opinion is the author's own and does not necessarily reflect the views of MediaVault Global.