India’s Software Services Exports Rise 8.2% To USD 221.4 Bn In FY26: RBI

New Delhi, Sep 21 (KNN) India’s software services exports, excluding services delivered through overseas commercial presence, rose 8.2 per cent year-on-year to USD 221.4 billion in 2025-26, according to the Reserve Bank of India’s (RBI) annual survey on computer software and information technology-enabled services (ITES).

The survey covered computer services and ITES, including business process outsourcing (BPO), and analysed exports by activity, destination, mode of delivery and supply.

The RBI contacted 7,569 software exporters for the survey, of which 2,363 companies responded. These companies accounted for around 89 per cent of estimated software services exports, reported Business Standard.

Computer Services Drive Export Growth

Computer services continued to account for more than two-thirds of software exports, with their share rising to 69.3 per cent from 67.4 per cent a year earlier.

Exports of computer services increased to USD 153.4 billion from USD 138.1 billion. Within the segment, IT services exports rose to USD 147 billion, while software product development exports declined marginally to USD 6.4 billion.

ITES exports increased to USD 68 billion from USD 66.6 billion, although their share fell to 30.7 per cent. BPO services accounted for USD 56 billion, or 82.4 per cent of ITES exports, while engineering services exports rose to USD 12 billion.

US Remains Largest Export Market

The US remained India’s largest market, with its share increasing to 54.1 per cent from 52.9 per cent. Software exports to the US rose to USD 119.7 billion from USD 108.3 billion.

Europe accounted for 31.8 per cent of exports, with the UK contributing 15.4 per cent, or around USD 34 billion. Asia accounted for 6.3 per cent, while Australia and New Zealand together accounted for 2.5 per cent.

Off-Site Delivery Dominates

Off-site delivery accounted for 91.7 per cent of software services exports, up from 90.7 per cent in the previous year. Off-site exports stood at USD 203 billion, compared with USD 18.4 billion through on-site delivery.

The US dollar remained the dominant invoicing currency at 72.6 per cent, 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, while public limited companies contributed 36.9 per cent.

Total Exports Including Overseas Affiliates Rise 9.5%

Including services delivered through foreign affiliates of Indian companies, total software services exports increased 9.5 per cent to USD 239.3 billion in 2025-26.

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

The local software business of Indian companies’ foreign affiliates rose to USD 17.9 billion from USD 13.9 billion, with the US and UK remaining major destinations.

(KNN Bureau)