Industry body FISME says MSMEs have been categorised as operational creditors, who rarely get their dues after the bankruptcy process.

The Indian micro, small and medium enterprises have not had it easy for five years now.

There was demonetisation, a tax regime that was rewarding and demanding in equal measure, a bankruptcy code that deprioritised dues owed to MSMEs, and finally the pandemic and rising commodity prices.

https://www.moneycontrol.com/news/business/budget-2022-msmes-seeks-amendment-in-ibc-restoration-of-interest-subvention-scheme-7845791.html