India’s Digital and Fintech Ecosystem Can Boost Global Exports, Says Commerce Secretary Agarwal

Commerce Secretary Agarwal described e-commerce exports by small and medium enterprises (SMEs) as a key sector. He said fintech companies can make a significant difference. India wants to increase the share of SMEs in global exports. However, access to working capital is a major obstacle for SMEs. Many businesses lack credit history or collateral. Consequently, e-commerce exporters need short-term capital to fulfill orders.

Aggarwal stated that India's fintech and technology ecosystem must move beyond the export of individual products. It should focus on developing solutions tailored to the needs of diverse global markets. India has signed agreements and memorandums of understanding with 23 countries for cooperation on digital public infrastructure. Digital payments and interoperability of payment systems are increasingly becoming a part of India's trade negotiations. This is particularly important with countries where India has a large diaspora.

The government is opening up avenues for Indian financial services companies through free trade agreements (FTAs). These include commitments related to remote delivery of services and the presence of financial institutions across borders. Agarwal said that India has signed nine free trade agreements in the last five years. These agreements cover economies representing approximately $6 trillion of global GDP. These agreements include financial services along with Indian goods and services, creating a broad platform for access to foreign markets.