DEPARTMENT-RELATED PARLIAMENTARY STANDING COMMITTEE ON INDUSTRY

What Happened

The Department-Related Parliamentary Standing Committee on Industry (functioning under the Rajya Sabha), chaired by Shri Tiruchi Siva, presented its 333rd Report to Parliament on 11 March 2026, covering the Demands for Grants (2026-27) of the Ministry of Micro, Small and Medium Enterprises (MSME).
This constitutes the Committee's annual scrutiny of the MSME Ministry's budget proposals before Parliament votes on them, fulfilling one of the primary constitutional oversight functions of Parliamentary Standing Committees.
The report represents Parliament's pre-budget examination of the executive's spending plans — a key mechanism of legislative oversight over the executive.

Static Topic Bridges

Department-Related Parliamentary Standing Committees (DRPSCs) are permanent committees of Parliament constituted under the Rules of Procedure of both Houses. There are 24 such committees, each covering one or more ministries/departments. They are joint committees (drawing members from both Lok Sabha and Rajya Sabha), though they function under the direction of either the Speaker (Lok Sabha) or the Chairman (Rajya Sabha). Each committee has 31 members — 21 from Lok Sabha nominated by the Speaker and 10 from Rajya Sabha nominated by the Chairman. Their term does not exceed one year (members are re-nominated annually).

Total DRPSCs: 24 (covering all ministries and departments of the Union Government)
Composition: 31 members each — 21 from Lok Sabha + 10 from Rajya Sabha
Administration: 8 committees under Rajya Sabha Chairman; 16 under Lok Sabha Speaker
Committee on Industry: under Rajya Sabha Chairman's jurisdiction
Term of office: not exceeding one year (membership renewed annually)
Presiding officer: Chairman of the Committee (elected by members); in this case, Tiruchi Siva (MP, Rajya Sabha)
Established: DRPSCs set up in 1993 (first set of 17); expanded to 24 in 2004

Connection to this news: The Committee on Industry's 333rd Report is an output of its primary function — examining the MSME Ministry's Demands for Grants — before Parliament votes on the budget proposals, representing systematic pre-budget scrutiny by the legislature.

Demands for Grants — Parliamentary Financial Control

The Demands for Grants is the mechanism by which Parliament exercises control over government expenditure. Under Article 113 of the Constitution, all expenditure proposals (except Charged Expenditure) must be voted on by the Lok Sabha as Demands for Grants. The procedure is: the Finance Minister presents the Union Budget → each Ministry's demands are referred to the relevant Parliamentary Standing Committee → the Committee examines the demands, calls officials, reviews performance, and submits a report with recommendations → Parliament debates and votes on the demands → once approved, the demands are incorporated in the Appropriation Act.

Article 113: Demands for Grants must be submitted to the Lok Sabha (not Rajya Sabha); Rajya Sabha cannot vote on them
Standing Committee's role: examine demands BEFORE Parliament votes — technical scrutiny, policy review, performance assessment
The Committee can call Ministry officials, experts, and stakeholders for depositions
Reports are presented to Parliament — both Houses; government is not bound to accept recommendations but must respond
Guillotine: Parliament may "guillotine" (pass en bloc without debate) demands not discussed before the budget deadline — undermines legislative scrutiny; Standing Committees partially address this by providing detailed written reports
Financial year: April 1 to March 31; Demands for Grants for 2026-27 were being examined in early 2026

Connection to this news: The 333rd Report was presented on 11 March 2026 — during the pre-budget scrutiny window for FY 2026-27 Demands for Grants — fulfilling Article 113's parliamentary control over government expenditure.

Parliamentary Oversight and the MSME Sector

The Ministry of MSME administers programmes for the Micro, Small and Medium Enterprises sector — a critical pillar of India's economy. MSMEs are defined under the MSME Development (Amendment) Act, 2020 based on investment in plant & machinery and annual turnover: Micro (up to Rs. 1 crore investment, Rs. 5 crore turnover), Small (up to Rs. 10 crore investment, Rs. 50 crore turnover), Medium (up to Rs. 50 crore investment, Rs. 250 crore turnover). The sector contributes approximately 30% of India's GDP and 45% of exports, and employs over 11 crore people. Parliamentary Standing Committee scrutiny of MSME budget allocations is significant for tracking whether allocations for credit access (CGTMSE), technology upgradation (CLCSS/TUFS), and cluster development are adequate.

MSME definition (post-2020 amendment): Micro (≤ Rs. 1 cr investment, ≤ Rs. 5 cr turnover), Small (≤ Rs. 10 cr, ≤ Rs. 50 cr), Medium (≤ Rs. 50 cr, ≤ Rs. 250 cr)
MSME Development Act, 2006: principal legislation; amended 2020 for revised definition and upward revision of thresholds
MSME contribution: ~30% of GDP, ~45% of exports, 11+ crore employment
Key schemes: CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises), PM Vishwakarma, SFURTI, A-TUFIDEA
Parliamentary oversight: Standing Committee on Industry examines Ministry's annual budget (Demands for Grants) and reports with recommendations
Committee reports are public documents — can be accessed via Parliament website

Connection to this news: The 333rd Report on MSME Demands for Grants 2026-27 tests Parliament's oversight role — whether the legislature is able to scrutinise executive expenditure plans for a sector that affects over 11 crore workers and is a key driver of inclusive growth.

Key Facts & Data

Report number: 333rd Report of the Department-Related Parliamentary Standing Committee on Industry (Rajya Sabha)
Presented to Parliament: 11 March 2026
Committee Chairman: Shri Tiruchi Siva (Rajya Sabha MP)
Subject: Demands for Grants 2026-27 of Ministry of MSME
Committee composition: 31 members (21 Lok Sabha + 10 Rajya Sabha); under Rajya Sabha Chairman's jurisdiction
Total DRPSCs: 24 (8 under RS Chairman, 16 under LS Speaker)
MSME sector: ~30% GDP, ~45% exports, 11+ crore jobs
MSME definition threshold revised: MSME Development (Amendment) Act, 2020
Constitutional basis for Demands for Grants: Article 113 (money bills/expenditure must be passed by Lok Sabha)
DRPSCs first established: 1993 (17 committees); expanded to 24 in 2004