Software service exports rise 8.2 percent to $221.4 billion
India's software services exports rose by 8.2 percent year-on-year to $221.4 billion during 2025-26, according to the annual survey released by the Reserve Bank of India. Total exports including overseas affiliates reached $239.3 billion.
IT services drive cross-border delivery
Computer services generated $153.4 billion or 69.3 percent of total software exports, with core IT services contributing $147.0 billion and software product development accounting for $6.4 billion.
IT-enabled services rose to $68.0 billion, where business process outsourcing reached $56.0 billion and engineering services contributed $12.0 billion.
The United States remained the primary destination with a 54.1 percent share at $119.7 billion, followed by Europe at 31.8 percent or $70.3 billion, led by the United Kingdom with $34.0 billion.
Cross-border supply dominated delivery modes at 84.7 percent, while off-site execution accounted for 91.7 percent of total export revenue.
Affiliate expansion and dollar dominance
The survey covered 2,363 responding companies out of 7,569 contacted, representing roughly 89 percent of total estimated software exports.
Private limited entities generated 60.8 percent of export revenue with 9.3 percent growth, while public limited firms accounted for 36.9 percent.
The US dollar remained the dominant invoicing currency at 72.6 percent, followed by the euro at 9.6 percent and the rupee at 6.3 percent.
Foreign affiliates expanded local operations to $17.9 billion from $13.9 billion.
Resilience masking deep structural concentration
Solid export growth underlines the enduring cost and scale advantages of Indian technology vendors.
However, heavy dependence on the US market and traditional off-site IT delivery leaves earnings exposed to foreign tech spending cycles.
Sustained expansion will require faster scaling in proprietary software products and engineering.