2 hrs ago
India's Services Exports Target Goods Lead Through Fintech Diversification
India sells both physical goods and services to other countries.
Services include technology work, professional help and financial activities.
In 2025-26, services made up nearly half of India's total exports.
A government official said services could eventually become larger than goods exports.
He also warned that India relies too much on technology and professional services.
Fintech could help India sell more financial tools around the world.
Cheaper remittances could save Indian workers abroad and their families money.
India is also working on several trade agreements.
The United Kingdom's carbon-credit decision could help Indian exporters avoid paying certain carbon costs twice.
Services exports reached $421 billion, or 48% of India's $863 billion in total exports in 2025-26.
Commerce Secretary Rajesh Agrawal said services exports would eventually exceed merchandise exports but require diversification beyond IT and professional services.
Fintech, trade finance, insurance and lower-cost remittances were identified as potential growth areas for India's services exports.
Agrawal said the India-US trade pact was more or less finalised, while the India-Chile and India-New Zealand agreements were at different stages.
The United Kingdom recognised India's Carbon Credit Trading Scheme for its carbon border adjustment mechanism, subject to verification.
- Who
- India and Commerce Secretary Rajesh Agrawal.
- What
- India's services exports are expected to eventually overtake goods exports, with fintech and other sectors supporting diversification.
- Where
- The remarks were made at the Global Fintech Fest 2026; the proposed opportunities target markets in Asia, Africa and Latin America.
- When
- The remarks were made on Wednesday at the Global Fintech Fest 2026; the export figures refer to 2025-26.
- Why
- India needs to reduce its reliance on IT, IT-enabled services and professional services to achieve more sustainable export growth.
Key facts
- Services exports
- $421 billion, or 48% of India's $863 billion in total exports in 2025-26
- Current concentration
- IT and IT-enabled services contribute about half of services exports, while professional services contribute about 30%
- Global financial services trade
- Estimated at $670 billion, with India's share at $8 billion
- Indian remittances
- More than $125 billion received annually
- Remittance costs
- Average costs are 5-6%; reducing them to 3% could put an additional $5 billion in workers' hands
- Trade agreements
- India has finalised nine agreements in five years covering economies representing $60 trillion in GDP
- Carbon-trading recognition
- The United Kingdom will recognise India's Carbon Credit Trading Scheme under its carbon border adjustment mechanism, subject to verification
Quotes
Rajesh Agrawal
India’s commerce secretary
“It needs diversification if we have to grow sustainably for a long period.”
telegraphindia.com
Sources
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