NEW DELHI, September 18, 2026: India’s technology industry has strengthened its position in the global services economy, with the country’s software services exports rising 9.5 per cent to $239.3 billion in 2025-26, according to the latest data released by the Reserve Bank of India.
The milestone reflects the growing international demand for Indian technology capabilities at a time when businesses worldwide are accelerating investments in digital transformation, cloud infrastructure, artificial intelligence, cybersecurity and data-driven operations.
The RBI’s broader measure puts India’s software services exports at $239.3 billion when services delivered through the overseas commercial presence of Indian companies are included. On a basis excluding such overseas commercial presence, software services exports stood at $221.4 billion, registering growth of 8.2 per cent during the financial year.
The numbers demonstrate that India’s IT industry is no longer dependent solely on traditional software outsourcing. The sector has progressively expanded into technology consulting, engineering, business-process services, cloud solutions, analytics and other specialised digital capabilities, creating a much broader export base.
Computer services continued to constitute the largest share of India’s software services exports, contributing more than two-thirds of the total. Business process outsourcing also remained an important component, with finance and accounting-related services forming a significant part of the BPO business.
This diversification has helped Indian technology companies remain relevant to international clients even as the nature of technology spending has changed. Companies are increasingly seeking partners capable of combining technology implementation with domain expertise and business transformation.
The United States continued to be the most important destination for Indian software services. It accounted for 54.1 per cent of India’s software services exports during FY26.
Europe represented another major market, contributing 31.8 per cent of exports. The United Kingdom alone accounted for 15.4 per cent, highlighting the continuing importance of developed markets to India’s technology-services business.
The geographical pattern also illustrates both the strength and the opportunity for the Indian IT industry. While established markets remain critical revenue sources, expansion into Asia-Pacific, the Middle East, Africa and other emerging markets could provide additional avenues for growth and diversification.
The US dollar remained the principal currency used for invoicing India’s software exports. It accounted for 72.6 per cent of export transactions during FY26.
The euro represented 9.6 per cent, while the Indian rupee accounted for 6.3 per cent and the British pound for 6 per cent.
The dominance of the dollar reflects the strong connection between Indian technology companies and North American customers, while the presence of multiple invoicing currencies demonstrates the sector’s wide international reach.
A striking feature of India’s technology-export model continues to be its ability to deliver services remotely. Around 91.7 per cent of software services exports were delivered through off-site modes during FY26.
This model has become an important competitive advantage for Indian companies. Technology teams based in India can work with customers across continents, providing software development, technical support, analytics, consulting and other services without requiring a physical workforce at every customer location.
The growth of remote and distributed delivery has also allowed technology companies to scale their international operations more efficiently.
The RBI’s survey covered 7,569 software-export companies, with 2,363 firms responding. The respondents included most of the large companies and represented around 89 per cent of estimated total software services exports.
The survey therefore provides a significant window into the structure and performance of India’s technology-export ecosystem, particularly the contribution of large and established IT services companies.
At the same time, India’s technology economy has developed a sizeable base of smaller firms, startups and specialised technology providers. Their expansion into niche areas could become increasingly important as global technology buyers look for specialised expertise rather than only large-scale outsourcing capacity.
AI Could Redefine the Next Growth Cycle
The next chapter for India’s IT export industry is likely to be shaped heavily by artificial intelligence.
Generative AI and automation are changing how software is developed and how business processes are delivered. This presents both an opportunity and a structural shift for Indian technology companies.
Rather than relying primarily on labour-intensive technology services, companies are increasingly moving towards AI engineering, data platforms, cloud transformation, cybersecurity, digital products and high-end technology consulting.
For India, the ability to combine its large technology workforce with AI capabilities could determine how much additional value the country can capture from the next wave of global digital spending.
The expansion of software exports also carries significance beyond the IT industry. Technology services are a major source of foreign-exchange earnings for India and form an important part of the country’s services-export surplus.
The continued expansion of software services therefore provides support to India’s broader external sector while reinforcing the country’s reputation as a major global destination for technology and business services.
The latest export numbers also underline the growing importance of technology in India’s international economic engagement. Software is effectively becoming one of the country’s major globally traded capabilities.
Crossing the $239-billion mark represents a significant expansion of India’s technology-services footprint, but the next phase will be less about export volume alone and more about the value generated from each technology engagement.
Indian companies face a global market where AI, automation and digital platforms are rapidly changing traditional business models. Maintaining growth will require continuous investment in skills, intellectual property, research, innovation and specialised technology capabilities.
For India, the opportunity is substantial. The country has already built a globally recognised technology-services ecosystem. The task now is to evolve that ecosystem from a major delivery centre into an increasingly important source of technology innovation, digital products and high-value services.
With software exports reaching $239.3 billion in FY26, India’s IT industry enters its next phase with a larger global footprint—and a technology landscape that is demanding a new generation of capabilities.
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