BRICS Backs Easier Finance For MSMEs, Invoice Discounting Mechanism Under Study

New Delhi: BRICS countries have reaffirmed their commitment to helping micro, small and medium enterprises (MSMEs) expand internationally, while pushing for easier access to affordable finance and global trade opportunities.

The New Delhi Declaration, adopted at the BRICS Summit chaired by India, recognised MSMEs as important contributors to economic growth, employment and prosperity across member countries.

Finance Remains Key Hurdle

BRICS acknowledged that access to affordable finance remains a major structural constraint for MSMEs, limiting their ability to participate in international trade and integrate into global value chains.

The grouping backed measures aimed at reducing financing gaps, particularly for smaller businesses that often struggle to access formal credit.

It welcomed the BRICS Guiding Principles for Credit Assessment Frameworks for export-oriented MSMEs. The framework seeks to use diverse and relevant data sources to address information gaps, improve assessment of credit risks and widen access to formal finance for underserved enterprises.

Digital Trade Finance In Focus

BRICS also stressed the need for innovative financing mechanisms, including digital and platform-based solutions involving multiple stakeholders.

Such mechanisms could make trade finance easier to access and help smaller businesses participate more effectively in cross-border commerce.

The grouping welcomed the Jaipur Consensus to study the establishment of an Invoice Discounting Mechanism for BRICS members.

The proposed mechanism could allow MSMEs to convert unpaid invoices into working capital more quickly, improving cash flows and supporting their participation in international trade.

SME Cooperation Gets Push

BRICS recognised initiatives undertaken by its SME Working Group and praised India's Chairship for organising the inaugural BRICS SME Forum in Agra.

The grouping welcomed the forum's report on improving MSME competitiveness through better access to finance, technology and sustainable growth.

It also supported holding a second SME Forum and welcomed a framework for greater cooperation within the SME Working Group.

The 11-member BRICS grouping is holding its New Delhi summit on September 12 and 13.