India’s Software Exports Rise 8.2% to $221.4 Billion in FY2025-26

India’s software exports continued to expand in FY2025-26, with software services exports rising 8.2% year-on-year to $221.4 billion, according to the Reserve Bank of India’s latest annual survey. The data highlights the continued importance of the technology services sector to India’s external trade, with the United States remaining the country’s largest overseas market.

The RBI’s Survey on Computer Software and Information Technology Enabled Services Exports: 2025-26 showed that the US accounted for 54.1% of India’s software services exports, while European countries collectively represented another 31.8%.

India Software Exports Reach $221.4 Billion

India’s software services exports, excluding sales through the overseas commercial presence of Indian companies, increased from $204.7 billion in FY2024-25 to $221.4 billion in FY2025-26.

The latest growth rate of 8.2% was higher than the 7.3% growth recorded in the previous year. The RBI survey covered software services across computer services and information technology-enabled services, including IT services, software product development, BPO and engineering services.

The survey contacted 7,569 software export companies, of which 2,363 companies responded. These respondents represented around 89% of the RBI’s estimated total software services exports.

US Remains the Largest Market

The United States continued to dominate India’s software exports during FY2025-26.

Software exports to the US reached approximately $119.7 billion, up from $108.3 billion a year earlier. The US share of India’s total software services exports increased from 52.9% to 54.1%.

The UK remained another major destination, accounting for 15.4% of total software exports. Europe as a whole represented 31.8% of India’s software services exports, equivalent to around $70.3 billion.

The figures underline the continued concentration of Indian technology services demand in major developed markets.

IT Services Lead Software Exports

Computer services remained the largest component of India’s software exports, accounting for 69.3% of total software services exports in FY2025-26.

Within this category, IT services exports increased to approximately $147 billion, compared with $131.3 billion in FY2024-25. This made IT services the largest individual segment of India’s software export industry.

Software product development, however, moved in the opposite direction. Exports from this segment declined to $6.4 billion from $6.8 billion a year earlier.

BPO Services Remain Important

Business process outsourcing continued to be a major contributor to India’s IT-enabled services exports.

BPO exports reached around $56 billion in FY2025-26. BPO remained the dominant component of the broader IT-enabled services category, which also includes engineering and other technology-enabled services.

Engineering services exports also increased to approximately $12 billion, compared with $10.8 billion in the previous financial year.

The figures show that India’s technology exports extend beyond traditional IT outsourcing, covering engineering, business processes and other technology-enabled activities.

Off-Site Services Account for More Than 90%

Another important feature of India’s software export industry is the dominance of off-site service delivery.

According to the RBI survey, 91.7% of software services exports were delivered through the off-site model in FY2025-26, compared with 90.7% in the previous year. On-site services accounted for the remaining 8.3%.

This reflects the scale of services delivered remotely from India to international clients.

Cross-border supply, classified as Mode 1 under the international trade framework, accounted for $202.7 billion of total software services exports when all modes of supply were considered.

Total Software Services Exports Reach $239.3 Billion

The broader export figure is even higher when services delivered through the overseas commercial presence of Indian companies are included.

Total software services exports, including overseas commercial presence, increased 9.5% to $239.3 billion in FY2025-26 from $218.6 billion in FY2024-25.

The distinction is important because the headline $221.4 billion figure excludes sales generated through the overseas commercial presence of Indian companies.

The RBI reported that software business conducted locally by foreign affiliates of Indian companies increased to $17.9 billion, up from $13.9 billion in the previous year. The US and UK remained major destinations for these overseas operations.

Dollar Remains the Main Invoicing Currency

The US dollar continued to be the dominant currency for India’s software export transactions.

Dollar-denominated exports increased to $160.7 billion, accounting for 72.6% of total software services exports. The euro represented 9.6%, while the Indian rupee accounted for 6.3% and the British pound for 6%.

The strong use of the dollar reflects the importance of the US market in India’s technology services trade.

What the RBI Data Shows About India’s IT Industry

The latest RBI survey highlights several trends in India’s software export sector.

First, overall exports continued to expand despite changes in the global technology environment. Second, the US strengthened its position as the largest market for Indian software services. Third, IT services remained the dominant export category, while BPO and engineering services also contributed significantly.

At the same time, the decline in software product development exports shows that growth has not been uniform across every technology segment.

The data also shows that India’s technology services industry is increasingly structured around remote and cross-border delivery rather than on-site work.

India’s Technology Export Outlook

India’s software services industry remains an important source of foreign-exchange earnings and international business activity. The latest RBI figures provide a snapshot of how the sector performed during FY2025-26, with overall exports reaching a new high of $221.4 billion.

The strong US contribution also means that developments in the American technology and business-services market remain particularly relevant for Indian IT companies. Meanwhile, continued growth in Europe and other international markets provides additional sources of demand.

For Indian technology companies, the combination of IT services, BPO, engineering services and other digital capabilities continues to shape the country’s global services-export footprint.

Looking Ahead

India’s software exports reached $221.4 billion in FY2025-26, marking an 8.2% annual increase, while the broader figure including overseas commercial presence climbed to $239.3 billion.

The United States remained the biggest destination, accounting for 54.1% of exports, while Europe contributed 31.8%. With IT services leading the sector and off-site delivery accounting for more than 90% of exports, the RBI data points to the continued scale of India’s globally integrated technology services industry.

FAQs

1. How much were India’s software exports in FY2025-26?

India’s software services exports reached $221.4 billion in FY2025-26, an 8.2% increase from the previous year.

2. What was the growth rate of India’s software exports?

Software services exports grew 8.2% year-on-year in FY2025-26.

3. Which country is the largest market for Indian software exports?

The United States remained the largest destination, accounting for 54.1% of India’s software services exports.

4. How much software did India export to the US?

India’s software services exports to the US reached approximately $119.7 billion in FY2025-26.

5. What percentage of India’s software exports went to the US?

The US accounted for 54.1% of India’s software services exports in FY2025-26.

6. Which software segment contributed the most?

Computer services were the largest category, accounting for 69.3% of total software services exports. IT services alone generated approximately $147 billion.

7. How much did BPO services contribute?

BPO services accounted for approximately $56 billion in exports during FY2025-26.

8. How much of India’s software exports were delivered off-site?

Off-site services accounted for 91.7% of software services exports in FY2025-26.

9. What were India’s total software services exports including overseas affiliates?

Including services delivered through overseas commercial presence, total software services exports reached $239.3 billion, up 9.5% year-on-year.

10. Who released the latest software export data?

The figures come from the Reserve Bank of India’s annual Survey on Computer Software and Information Technology Enabled Services Exports for 2025-26.