India Pushes BRICS Trade Receivables Discounting System To Support MSMEs

New Delhi, Aug 7 (KNN) India has proposed a study to establish a BRICS Trade Receivables Discounting System aimed at addressing the trade finance gap faced by micro, small and medium enterprises (MSMEs) and supporting their integration into global markets.

The proposal, made under India's BRICS Chairship in 2026, seeks to improve MSMEs' access to working capital by facilitating the discounting of trade receivables, thereby strengthening their participation in international trade.

MSME Internationalisation Tops India's BRICS Agenda

Internationalisation of MSMEs is a key priority under India's BRICS Chairship, guided by the theme ‘Building for Resilience, Innovation, Cooperation and Sustainability.’

As part of this agenda, India hosted the inaugural BRICS MSME Forum in Agra on June 19, 2026, focusing on expanding global opportunities for small businesses under the theme ‘Sustainable Roots to Global Routes.’

Focus On Trade Finance, Digital Payments And Global Value Chains

India's proposed framework emphasises greater integration of MSMEs into global value chains by connecting enterprises in BRICS economies with international markets and cross-border trade networks.

The initiative also highlights the need to bridge trade finance gaps through innovative financing mechanisms, strengthen fintech-enabled digital infrastructure for seamless cross-border payments, and promote sustainability and innovation to help MSMEs meet global quality and environmental standards.

Proposal Aims To Improve MSME Liquidity, Global Competitiveness

The proposed Trade Receivables Discounting System is expected to improve liquidity for MSMEs, reduce financing constraints and enhance their competitiveness in international markets by providing easier access to trade credit and working capital.

(KNN Bureau)