Mumbai, September 9 (Daily Kiran) : Commerce Secretary Rajesh Agarwal announced on Wednesday that India should leverage its fintech capabilities, particularly the Unified Payments Interface (UPI) and Digital Public Infrastructure (DPI), to expand into global markets. Speaking at the Global Fintech Fest in Mumbai, he highlighted the significant opportunity for India to extend its digital payment and financial technology services, especially in countries within the Global South.
Agarwal noted the rapidly growing global market for fintech services. He stated that if India captures even a 10 percent share of this market, its fintech service exports could soar from the current $8 billion to between $60 billion and $80 billion.
“The global trade in fintech services is expanding quickly. If we manage to secure just a 10 percent contribution, our exports could rise dramatically,” Agarwal explained. He emphasized that India is already working towards sharing its digital public infrastructure model with other nations, having signed memorandums of understanding (MOUs) for DPI collaboration with approximately 23 countries.
Additionally, the government is working on interconnecting payment systems with various countries, particularly those with large Indian diaspora populations. Agarwal stated, “We have agreements with around 23 countries for DPI collaboration. In our discussions on free trade agreements, we also address the coordination of payment systems, especially with countries that have significant Indian communities.”
He further mentioned that technology plays a crucial role in reducing the costs of financial services. Expanding digital payment systems and India’s fintech capabilities globally can make remittances, loan distribution, and payment services more affordable and accessible.
Agarwal emphasized the importance of free trade agreements (FTAs) in developing the fintech sector. During trade negotiations, India aims to eliminate barriers related to financial regulation, telecommunications, cross-border data flow, artificial intelligence (AI), investment, and the movement of professionals to create a more conducive environment for fintech growth.
“When negotiating FTAs, we strive to reduce obstacles linked to financial regulation, telecommunications, data flow, AI, investment, and the mobility of professionals to promote the fintech economy,” he said.
He also pointed out that service trade is a crucial aspect of FTA discussions, with a focus on financial services. India seeks to ensure that foreign banks gain opportunities in India while enabling Indian banks and financial institutions to expand into other countries.
“In the past four to five years, India has signed nine free trade agreements, encompassing countries with a combined economy of nearly $60 trillion,” Agarwal concluded.
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