BRICS Trade Ministers to Study Invoice Discounting Mechanism for MSME Financing

Source: The Hindu Business Line | Original Published At: 2026-08-08 06:18:19 UTC

Key Points

• BRICS trade ministers agreed to undertake a study to establish an Invoice Discounting Mechanism for member countries.
• The mechanism is intended to improve access to trade finance for Micro, Small, and Medium Enterprises, whose global finance gap is estimated at around $5.7 trillion.
• The proposal aims to help MSMEs convert confirmed trade receivables into immediate liquidity through receivables financing and invoice discounting.
• Ministers expressed support for moving from exclusionary collateral-based lending toward inclusive, growth-oriented credit systems.
• The meeting also discussed local currency financing mechanisms to reduce exchange rate risks and strengthen intra-BRICS trade.
• BRICS trade ministers proposed cooperation on digital trade documentation, including e-invoices, electronic bills of lading, and e-customs declarations.
• The outcomes were issued as the Jaipur Consensus following the 16th meeting of BRICS trade ministers in Jaipur.