India's software services exports rise 8.2% to $221.4 bn in FY26: RBI data

India’s exports of software services, excluding sales through overseas commercial presence, rose 8.2 per cent year-on-year to $221.4 billion in 2025-26, according to the Reserve Bank of India’s (RBI’s) annual survey on computer software and information technology-enabled services (ITES) exports.

The survey covered software services such as computer services and ITES/business process outsourcing (BPO) services and examined exports by activity, mode of delivery, destination and mode of supply.

For the 2025-26 survey, the RBI contacted 7,569 software export companies, of which 2,363, including most large companies, responded. The participating companies accounted for around 89 per cent of estimated software services exports.

How did computer services and ITES exports perform?

Computer services continued to account for more than two-thirds of India’s software services exports in 2025-26. Their share increased to 69.3 per cent from 67.4 per cent a year earlier, while exports rose to $153.4 billion from $138.1 billion.

Within computer services, IT services exports increased to $147 billion from $131.3 billion. Software product development exports, however, declined to $6.4 billion from $6.8 billion.

ITES exports rose to $68 billion in 2025-26 from $66.6 billion in the previous year, though their share in overall software services exports fell to 30.7 per cent from 32.6 per cent.

BPO services remained the largest component of ITES exports at $56 billion, accounting for 82.4 per cent of the segment. Engineering services exports rose to $12 billion from $10.8 billion.

Which countries were India’s biggest software export markets?

The United States remained India’s largest market for software services exports, with its share rising to 54.1 per cent in 2025-26 from 52.9 per cent a year earlier. Exports to the US increased to $119.7 billion from $108.3 billion.

Europe accounted for 31.8 per cent of exports, compared with 32.8 per cent in 2024-25. The United Kingdom was the largest European destination, accounting for 15.4 per cent of India’s software services exports, valued at $34 billion.

Asia accounted for 6.3 per cent of exports, while Australia and New Zealand had a 2.5 per cent share.

How were software services delivered and invoiced?

Off-site delivery continued to dominate India’s software services exports, accounting for 91.7 per cent of the total in 2025-26, up from 90.7 per cent a year earlier. Off-site exports stood at $203 billion, while on-site services accounted for $18.4 billion.

The US dollar remained the main invoicing currency, accounting for 72.6 per cent of software exports. It was followed by the euro at 9.6 per cent, the rupee at 6.3 per cent and the pound sterling at 6 per cent.

Private limited companies accounted for 60.8 per cent of software services exports during the year, followed by public limited companies with a 36.9 per cent share.

What was the contribution of overseas commercial presence?

Total software services exports, including services delivered through foreign affiliates of Indian companies, increased 9.5 per cent to $239.3 billion in 2025-26.

Cross-border supply accounted for $202.7 billion, or 84.7 per cent, of the total. Commercial presence contributed $17.9 billion, while services supplied through the presence of natural persons accounted for $18.4 billion.

The local software business of foreign affiliates of Indian companies rose to $17.9 billion in 2025-26 from $13.9 billion in the previous year. The US and the UK remained major destinations for such business, according to the RBI survey.

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