Fintech could unlock India's next export boom

Commerce Secretary Rajesh Agrawal emphasized on Wednesday that India should harness its expertise in building fintech solutions for a massive population to become a key exporter of digital financial services. Speaking at the Global Fintech Fest 2026, Agrawal highlighted that while India's services exports have been dominated by IT and IT-enabled services, there is significant potential in diversifying to include financial services, which could grow substantially with technological advancements enabling cross-border service delivery without physical movement.

India's transition from a cash-dominated economy to a digitally-driven one has created a unique experience that could be adapted for countries in the Global South facing similar challenges, such as informal sectors, reliance on cash, and limited financial access outside urban areas. Agrawal proposed that Indian fintech firms should collaborate with local entities and entrepreneurs to tailor solutions to specific market needs rather than merely exporting existing products.

He pointed out that India receives over $125 billion annually in remittances, with costs currently high due to multiple intermediaries and currency conversions. By reducing these costs, migrant workers could see an additional $5 billion in their pockets. Agrawal also discussed the potential of digital lending through transaction history assessments and highlighted the government's GeM Sahai initiative, which facilitates loans to MSMEs via the Government e-Marketplace.

Insurance, wealth management, investment services, and trade finance were identified as additional areas where Indian fintech firms could develop exportable solutions. The adoption of AI for fraud detection, risk management, and efficiency improvements was emphasized as crucial for maintaining competitiveness in the digital economy.

Agrawal underscored that responsible technology is not a constraint but a prerequisite for global competitiveness. He suggested utilizing India's GIFT City and the International Financial Services Centres Authority as bases for exporting financial services globally, leveraging free trade agreements and digital public infrastructure partnerships to open pathways into international markets.