India's total IT software exports, including services delivered through foreign affiliates of Indian companies, rose 9.5 per cent year-on-year in financial year 2025-26 to reach $239.3 billion, according to data released by the Reserve Bank of India (RBI) on 18 September 2026. The milestone underscores India's continued dominance in global technology services, even as the sector navigates softening demand from key Western markets.

Core Export Figures

Excluding sales through overseas commercial presence, India's software services exports grew 8.2 per cent year-on-year in FY2025-26 to $221.4 billion, according to the RBI data. Computer services continued to account for more than two-thirds of total software exports, reflecting the enduring weight of application development, IT consulting, and infrastructure management in India's export basket.

Business Process Outsourcing (BPO) services remained the dominant component within IT-enabled services (ITES) exports. Among BPO sub-segments, finance and accounting services, along with auditing, bookkeeping, and tax consulting, emerged as the leading streams for the year.

Company Profile and Survey Methodology

Private limited companies led the growth charge in FY2025-26, registering a 9.3 per cent expansion in software exports. The RBI survey contacted 7,569 software export companies, of which 2,363 firms — including most large companies — responded. The participating companies together accounted for approximately 89 per cent of total estimated software services exports, lending the data high representational accuracy.

Geographic and Currency Breakdown

The United States remained India's largest software export destination, commanding a 54.1 per cent share of total exports. European countries collectively accounted for 31.8 per cent, with the United Kingdom holding a notable 15.4 per cent share within that bloc.

On the currency front, the US dollar dominated invoicing at 72.6 per cent of total transactions. The Euro followed with a 9.6 per cent share, while the Indian Rupee accounted for 6.3 per cent and the British Pound Sterling for 6 per cent.

Mode of Service Delivery

Off-site delivery — where services are rendered remotely from India — constituted a dominant 91.7 per cent of all software services exports in FY2025-26. This structural reliance on remote delivery has been a defining feature of India's IT export model and has remained largely consistent over successive years, reinforcing cost and scale advantages for Indian vendors. Notably, this also means the sector's performance is closely tied to global digital infrastructure investment cycles and clients' appetite for remote-first engagement.

Outlook and Context

The 9.5 per cent growth rate comes amid a mixed global technology spending environment, with large US enterprises exercising caution on discretionary IT budgets. That India's exports still crossed the $239 billion threshold suggests resilience built on long-term contracts, expanding GCC (Global Capability Centre) deployments, and a broadening service mix. Industry observers will watch whether momentum holds into FY2026-27 as artificial intelligence-led transformation reshapes client procurement patterns.