The government is set to introduce a slate of economic bills during the Monsoon Session, targeting reforms in MSME payments, foreign investor taxation, sovereign debt markets and the regulation of foreign funding.
One of the key proposals is the Income-tax (Amendment) Bill, 2026, which seeks to replace a recently issued ordinance that exempts certain foreign institutional investors (FIIs) and the Bank for International Settlements (BIS) from paying tax on income earned from investments in specified government securities.
The move is aimed at making India's sovereign debt market more attractive to long-term global investors.
The government has also listed a separate bill for introduction in the Lok Sabha to further deepen India's sovereign debt market by encouraging stable foreign capital inflows, reinforcing efforts to broaden the investor base for government borrowing.
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Another significant proposal is the MSME Development (Amendment) Bill, 2026, which seeks to strengthen protections for micro, small and medium enterprises facing delayed payments.
The proposed legislation aims to improve recovery mechanisms, provide for the enforcement of arbitral awards involving MSMEs and give states greater flexibility in constituting MSME Facilitation Councils.
The amendments are also intended to promote ease of doing business by introducing a more trust-based regulatory framework while improving the efficiency of dispute resolution for small businesses.
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In addition, the government has listed the Foreign Contribution (Regulation) Amendment Bill, 2026 for consideration and passage in the Lok Sabha.
The proposed changes seek to establish a framework for the supervision, management and disposal of foreign contributions and assets belonging to organisations whose FCRA registrations have expired, been cancelled or otherwise ceased to be valid.
The package of economic bills reflects the government's focus on improving the investment climate, strengthening the MSME ecosystem and tightening the regulatory framework governing foreign-funded organisations during the Monsoon Session, which starts on July 21.
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