India’s Software Exports Reach $239.3 Billion in FY 2025-26

India’s software and IT-enabled services exports have reached a significant milestone, totaling $239.3 billion in the financial year 2025-26. This represents a robust 9.5% growth compared to the previous year, underscoring the country’s continued strength in the global technology market. The Reserve Bank of India’s annual survey provides a detailed look at these figures, covering both computer software and information-technology-enabled services.

Understanding the Export Figures

The headline figure of $239.3 billion includes the local software business conducted by foreign affiliates of Indian companies. It’s important to note that a narrower measure, which excludes overseas commercial presence, reported exports at $221.4 billion. This figure saw an 8.2% increase year-over-year. The distinction between these two totals is crucial for understanding the different scopes of business activity being measured.

Breakdown of Supply Channels

The majority of India’s software services exports come from cross-border supply. This channel generated $202.7 billion, making up 84.7% of the total export value. Other contributing channels include commercial presence, which brought in $17.9 billion, and supply through natural persons, accounting for $18.4 billion. The affiliate component, in particular, saw a notable increase of $4 billion from the previous year, with the United States and the United Kingdom being the primary destinations for these sales.

Delivery Location and Market Destinations

The data also highlights where and to whom these services are delivered. Off-site work accounts for a substantial 91.7% of software services exports, indicating that most services are performed away from the client’s physical location. In terms of market share, the United States remains the largest destination, receiving 54.1% of India’s software services exports. Europe as a region accounts for 31.8%, with the United Kingdom specifically representing 15.4% of the total.

Service Category Performance

When examining the performance across different service categories, IT services billings led the way with $147 billion. Business process outsourcing followed with $56 billion, and software product development contributed $56.5 billion. Interestingly, software product development was the only category to experience a decline. The combined total of these reported service categories is $259.5 billion, which is $20.2 billion higher than the overall export figure. The exact reconciliation between these category sums and the headline export total is not detailed in the report.

Software Services in the Broader Economy

Software services represent a significant portion of India’s overall services exports. With total services exports reaching $421.29 billion, software services alone accounted for 53%. This highlights the critical role the technology sector plays in the country’s economy. Recent analyses suggest that software services exports now make up approximately 5.2% of India’s GDP, a notable increase from pre-pandemic levels. When combined with business services, this figure rises to about 8.5% of GDP, demonstrating the sector’s growing economic scale. Industry reports also indicate that sales growth for Indian IT services companies was 8.2% in FY25/26, with a smaller portion of this revenue directed towards software product development.

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