India’s software exports rise 8.2% to $221.4 billion in FY26, US share grows

India’s software services exports rose 8.2% to $221.4 billion in 2025-26, with the US accounting for 54.1% and off-site services making up nearly 92% of exports, an RBI survey showed.

India’s software services exports rose 8.2% year-on-year to $221.4 billion in 2025-26, with the US continuing to account for more than half of the country’s software exports, according to the Reserve Bank of India’s annual survey released on Friday.

The RBI’s Survey on Computer Software and Information Technology Enabled Services Exports: 2025-26 showed that software services exports, excluding sales through the overseas commercial presence of Indian companies, increased from $204.7 billion in 2024-25 to $221.4 billion in 2025-26.

The survey covered exports by type of activity, delivery mode, destination and mode of supply.

IT leads

Computer services remained the largest component, accounting for 69.3% of total software services exports in 2025-26, up from 67.4% a year earlier. Within computer services, IT services exports rose to $147 billion from $131.3 billion, while software product development exports declined to $6.4 billion from $6.8 billion.

IT-enabled services (ITES) exports increased to $68 billion in 2025-26 from $66.6 billion in the previous year. Business process outsourcing (BPO) services continued to dominate ITES, accounting for $56 billion, or 82.4% of ITES exports. Engineering services contributed $12 billion, up from $10.8 billion in 2024-25.

US dominates

The US remained the largest destination for India’s software exports, with its share rising to 54.1% in 2025-26 from 52.9% a year earlier. Software exports to the US stood at $119.7 billion.

Europe was the second-largest destination, accounting for 31.8% of exports, with the UK contributing a 15.4% share.

The concentration of exports in the US and Europe was accompanied by the continued dominance of the US dollar in invoicing. The dollar accounted for 72.6% of software export invoices in 2025-26, up from 72% in the previous year. The euro accounted for 9.6%, while the rupee’s share declined to 6.3% from 7.1%. The pound sterling accounted for 6%.

Software services exports continued to be overwhelmingly delivered through off-site services. Off-site exports rose to $203 billion in 2025-26 and accounted for 91.7% of total software services exports, compared with a 90.7% share in 2024-25. On-site services accounted for the remaining 8.3%.

Private limited companies remained the largest organisational category, accounting for 60.8% of software services exports in 2025-26. Their exports increased to $134.6 billion from $123.1 billion a year earlier.

Public limited companies accounted for 36.9%, with exports of $81.7 billion.

Overseas presence

Including services delivered through the overseas commercial presence of Indian companies, total software services exports increased 9.5% during 2025-26 to $239.3 billion from $218.6 billion in the previous year.

Cross-border supply, or Mode 1, accounted for $202.7 billion, while commercial presence, or Mode 3, contributed $17.9 billion.

The survey also captured the growing role of foreign affiliates of Indian companies. Software business by these affiliates locally increased to $17.9 billion in 2025-26 from $13.9 billion in the previous year, with the US and UK remaining the major destinations.

The RBI contacted 7,569 software export companies for the 2025-26 survey, of which 2,363 companies responded. The participating companies accounted for around 89% of total estimated software services exports.

About the Author

Harsh Kumar is a policy reporter at Mint (HT Media Group), where he covers the Ministry of Commerce and Industry along with key departments of the Ministry of Finance, including the Department of Economic Affairs (DEA) and the Department of Financial Services (DFS). With over five years of experience in business and economic journalism, he has developed strong expertise in tracking policy developments and their wider economic impact.<br><br>He has previously worked with Business Standard, Moneycontrol, and Outlook Money, where he reported extensively on banking, financial services, and the broader economy. Over the years, he has built a reputation for delivering accurate, insightful, and impactful stories, supported by a keen eye for detail and a consistent track record of breaking exclusive news.<br><br>An alumnus of Jamia Millia Islamia, Harsh closely follows regulatory changes and key economic trends shaping India’s financial and industrial landscape. His reporting aims to simplify complex policy issues for a wider audience while maintaining depth and credibility.<br><br>Outside of work, he enjoys tracking policy developments, finding scoops, and travelling, reflecting his curiosity about how economic decisions shape everyday life.

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