India’s software services exports rise 8.2% to $221.4 billion in FY26

The United States continued to dominate as the biggest market for India’s software services exports in FY26, accounting for more than half of the country’s overseas technology shipments, according to data released by the Reserve Bank of India.Software exports to the US increased 11% during the year to $119.7 billion, taking its share in India’s total software services exports to 54.1%. This was higher than the 52.9% recorded in FY25, although the share had also reached the same level in FY24.India’s overall software services exports, excluding revenues generated through overseas subsidiaries, rose 8.2% to $221.4 billion in FY26. Sales from overseas affiliates contributed an additional $17.9 billion.'Clean Up Your Act': US Senator Warns India, China Over Russian Oil As Sanctions Bill Heads To Trump The US market expanded at a faster pace than overall exports, strengthening its position as the most important destination for Indian technology companies. The United Kingdom remained the second-largest market, though its contribution slightly declined to 15.4% from 15.5% in the previous year.The RBI survey covered computer services and IT-enabled services, including business process outsourcing. It received responses from 2,363 companies out of 7,569 exporters contacted, representing nearly 89% of estimated software service exports.IT services drive software export growthIT services remained the largest contributor, generating around $147 billion in exports. Business process outsourcing services accounted for $56 billion, while software product development exports stood at $6.4 billion. Despite overall growth, earnings from on-site services declined slightly to $18.4 billion in FY26 from $19 billion a year earlier. On-site services involve Indian technology professionals working at overseas client locations, while off-site services are delivered remotely from India-based centres.The export data came amid renewed discussions around US immigration policies affecting technology workers. However, the RBI survey did not link the decline in on-site earnings to visa regulations.India’s software exports also grew during a period of trade tensions with the US, though the RBI data does not establish any direct connection between tariff-related developments and software services growth.

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.