New Delhi, Sept. 12 -- BRICS countries on Saturday reaffirmed their commitment to strengthening the internationalisation of micro, small and medium enterprises (MSMEs), recognising their role in driving economic growth and prosperity.
The grouping, in the New Delhi Declaration adopted at the BRICS Summit chaired by India, identified access to affordable finance as a key constraint limiting MSMEs' participation in trade and integration into global value chains.
"We reaffirm our commitment to strengthening the internationalisation of Micro, Small and Medium Enterprises (MSMEs) as a driver of economic growth and prosperity. We acknowledge that access to affordable finance remains a primary bottleneck and structural constraint, limiting MSMEs' participation in trade and integration into Global Value Chains (GVCs)," the declaration said.
The BRICS nations welcomed guiding principles for credit assessment frameworks for export-oriented MSMEs, aimed at using diverse data sources to address information gaps, improve risk assessment and widen access to formal finance for underserved businesses.
"We welcome the BRICS Guiding Principles for Credit Assessment Frameworks for Export-oriented MSMEs that leverage diverse and relevant data sources to reduce information asymmetries, improve risk assessment and expand access to formal finance for underserved MSMEs," the declaration said.
The grouping also underlined the importance of innovative financing mechanisms, including digital and platform-based solutions, to make trade finance more accessible to MSMEs.
"We understand the importance of promoting innovative financing mechanisms, including digital and platform-based multi-stakeholder solutions for facilitating easier access to trade finance for MSMEs," the declaration said.
The BRICS countries also welcomed the Jaipur Consensus to study the establishment of an Invoice Discounting Mechanism for BRICS members. Such a mechanism could help MSMEs unlock working capital and strengthen their participation in international trade.
"We welcome the Jaipur Consensus to study the establishment of an Invoice Discounting Mechanism for BRICS members aimed at facilitating invoice discounting, enabling MSMEs to unlock working capital and strengthen their participation in international trade," the declaration said.
The grouping also recognised initiatives undertaken by its SME Working Group and commended India's BRICS Chairship for convening the inaugural BRICS SME Forum in Agra.
"We acknowledge the initiatives undertaken by the SME Working Group and commend the Indian Chairship for convening the inaugural BRICS SME Forum in Agra and its report titled "Advancing MSME Competitiveness in BRICS: Strengthening Access to Finance & Technology and Sustainable Growth", recognising its scope in relation to fostering cooperation, exchange of best practices and inclusive growth among MSMEs across BRICS countries and support the convening of second SME Forum," the declaration said.
The BRICS nations also welcomed a framework for cooperation in the SME Working Group.
The BRICS meeting, comprising 11 countries, is being held in New Delhi on September 12 and 13.
Published by HT Digital Content Services with permission from Millennium Post.