India’s Software Services Exports Rise 8.2% to $221.4 Billion in FY26

India’s Software Services Exports Surge to $221.4 Billion in FY26

The latest data underscores India’s growing prowess in the global software services market, highlighting a robust year for exports.

Overview of Export Growth

The Reserve Bank of India (RBI) released findings from its annual survey on computer software and information technology enabled services (ITES) exports, indicating a significant rise in software services exports for the fiscal year 2025-26. The survey involved 7,569 software export companies, with 2,363 responding, including many of the sector’s largest players. The 8.2% increase in exports to $221.4 billion demonstrates the sector’s ongoing strength and adaptability.

Dominance of Computer Services

Computer services continued to dominate India’s software exports, accounting for over two-thirds of the total. Business Process Outsourcing (BPO) services remained a key component of ITES exports, reflecting the country’s established reputation as a hub for outsourcing services. Private limited companies led the charge, showcasing a 9.3% growth in software exports, further emphasizing the competitive landscape of the Indian IT sector.

Key Markets and Currency Trends

The United States remained the largest market for Indian software exports, accounting for 54.1% of total exports, followed by European countries at 31.8%, with the United Kingdom being a significant contributor. The US dollar was the primary invoicing currency, reflecting the strong ties between Indian IT firms and American clients. This trend highlights the importance of the US market in driving revenue for Indian software companies.

Total Software Services Including Foreign Affiliates

When considering total software services exports, including those delivered by foreign affiliates of Indian companies, the figure rose by 9.5% to $239.3 billion in FY26. Notably, the local software business conducted by foreign affiliates increased significantly, reaching $17.9 billion, up from $13.9 billion the previous year. This growth indicates the expanding footprint of Indian companies in global markets, particularly in the USA and the UK.

Key Highlights

• Software services exports rose 8.2% year-on-year to $221.4 billion in FY26.
• Computer services accounted for over two-thirds of total exports.
• The US remains the largest market, comprising 54.1% of exports.
• Total software services, including foreign affiliates, reached $239.3 billion.
• Local business by foreign affiliates grew to $17.9 billion in FY26.

Investor Note: The steady growth in India’s software services exports reflects the sector’s resilience and adaptability, making it a crucial area for investors to monitor as global demand for IT services continues to rise.