The MSME finance gap is estimated around $5.7 trillion and increases to $8 trillion when informal enterprises are included. | Photo Credit: ANI

The BRICS trade ministers have agreed to undertake a study for setting up an 'Invoice Discounting Mechanism' for member countries to promote innovative financing systems that facilitate easier access to trade finance for Micro, Small, and Medium Enterprises (MSMEs).

The consideration is important as globally, the MSME finance gap is estimated around $5.7 trillion and increases to $8 trillion when informal enterprises are included.

The challenge primarily stems from the inability of small enterprises to present viable or bankable business plans resulting in stringent lending conditions, higher borrowing costs, increased collateral demands and market access bottlenecks.

The ministers expressed commitment to narrow this finance gap and support transition from exclusionary collateral-based lending to inclusive, growth-oriented credit systems to strengthen intra-BRICS trade including through exploration of local currency financing mechanisms to reduce exchange rate risks.

"We, therefore, issue the Jaipur Consensus to study the establishment of an Invoice Discounting Mechanism for BRICS members," according to the Chair's Statement and Outcome Document, released after the 16th meeting of the BRICS trade ministers in Jaipur.

It will facilitate receivables financing and invoice discounting and would enable MSMEs to unlock working capital by converting confirmed trade receivables into immediate liquidity, while fostering participation of MSMEs, banks, non-banking financial institutions, large corporates, insurance and regulatory agencies," the document said.

On promoting integration with the global value chains, the ministers proposed to build cooperation in connectivity and trade facilitation through digitisation of trade documentation, such as e-invoices, electronic bills of lading, and e-customs declarations.

Further, the minister also expressed commitment to promote a seamless flow of trusted, safe and secure digital trade that supports MSMEs through digital services, expand intra-BRICS trade, build digital skills, and secure the digital economy, while respecting national regulatory frameworks.

The meeting was attended by ministers or representatives from countries, including Brazil, China, Egypt, Ethiopia, Iran, Russia, South Africa, and the UAE.

Usually, a Chair's statement is issued when members lack consensus on a joint declaration.

According to a footnote of the statement: "The Chair's statement and outcome document comprising the entire text, including the Annexes, was agreed by all the BRICS Members. The issue which could not reach consensus is not reflected herein".

Published on August 8, 2026