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…
New Delhi: The BRICS nations have reaffirmed their dedication to aiding micro, small and medium enterprises (MSMEs) in expanding globally, while advocating for more accessible and affordable finance, as well as global trade prospects. The New Delhi Declaration, adopted at the BRICS Summit chaired by India, acknowledged MSMEs as crucial contributors to economic growth, employment, and prosperity in member countries.
Finance remains a significant obstacle for MSMEs, as accessing affordable financing limits their participation in international trade and integration into global value chains. The BRICS group supported measures to reduce financing gaps, particularly for smaller enterprises that often face challenges in obtaining formal credit. They welcomed the BRICS Guiding Principles for Credit Assessment Frameworks for export-oriented MSMEs, which employs diverse data sources to address information gaps, improve risk assessment, and widen access to formal financing for under-served enterprises.
Exploring Digital Trade Finance Innovations: BRICS emphasized the necessity of innovative financing mechanisms, such as digital and platform-based solutions that involve multiple stakeholders. These mechanisms could streamline trade finance access and empower smaller businesses to engage more effectively in cross-border commerce.
Joint Statement on an Invoice Discounting Mechanism: The BRICS grouping welcomed the Jaipur Consensus to examine the establishment of an Invoice Discounting Mechanism for BRICS members. This proposed mechanism would enable MSMEs to swiftly convert unpaid invoices into working capital, enhancing cash flows and supporting their participation in international trade.
Boost for SME Cooperation: The BRICS recognized the efforts of its SME Working Group and praised India's Chairmanship for organizing the inaugural BRICS SME Forum in Agra. The BRICS Summit 2026: "China And India Are Partners, Not Rivals," Says President Xi Jinping in a Meeting with PM Modi | VIDEO The group welcomed the forum's report on enhancing MSME competitiveness through improved access to finance, technology, and sustainable growth.
They also supported holding a second SME Forum and welcomed a framework for increased cooperation within the SME Working Group.
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