Reducing remittance costs could save Indian migrant workers USD 5 billion: Commerce Secretary

Mumbai (Maharashtra) [India], September 9 (ANI): Reducing the cost of sending remittances to India to 3 per cent from the current average of 5-6 per cent could put an additional USD 5 billion in the hands of Indian migrant workers, Commerce Secretary Rajesh Agrawal said on Wednesday, highlighting digital payments as a major opportunity for India's fintech sector.
Speaking at the Global Fintech Fest 2026 in Mumbai, Agrawal said India receives more than USD 125 billion in remittances annually. He added that if similar reductions in transaction costs were achieved globally, the savings could reach as much as USD 30 billion.
Agrawal also called on India's fintech industry to move beyond domestic success and start exporting its digital finance model to the world, particularly to countries across Asia, Africa and Latin America.
He held up the Unified Payments Interface (UPI) as proof that combining identity, consent and data technology can drive financial inclusion and reduce transaction costs. UPI is already linked to 11 countries, with more integrations underway, he said.
Agrawal described India's shift from a cash-heavy economy to a digital one over the past decade as a model that could be adapted, rather than simply copied, by other developing countries facing challenges such as informal economies and limited access to financial services outside urban centres.
He also pointed to a government e-marketplace pilot called "GeM Sahay", which uses digital transaction data to help small and medium enterprises access credit without collateral. Agrawal said the programme's July disbursements reached 857 loans, alongside falling lending rates, which he cited as evidence that data-driven credit models can widen access to finance.
Trade finance was another area highlighted by the Commerce Secretary. With India's annual exports at USD 863 billion and imports at more than USD 1 trillion, Agrawal referred to a proposed "Niryat Credit Card" for e-commerce exporters to help small businesses access short-term credit linked to online sales.
Agrawal also described GIFT City in Gujarat as an institutional gateway for exporting financial services. He noted that it has already helped bring services such as aircraft leasing onshore that were previously sourced from hubs including Ireland and Singapore.
He stressed that trust built on data privacy, regulation and cybersecurity would be central to India's fintech push abroad. India has signed digital public infrastructure cooperation agreements with 23 countries as part of broader free trade negotiations covering USD 60 trillion in combined GDP.
Closing his remarks, Agrawal urged Indian fintech firms to "build in India, but design for the world," positioning the domestic market as a testing ground and trade agreements as bridges to international expansion. (ANI)