India Software Services Exports Climb 8.2% to $221.4 Billion in FY26, RBI Survey Shows

India's cross-border software services sector demonstrated sustained resilience in the 2025–26 fiscal year, with exports excluding overseas commercial affiliates expanding 8.2% year-on-year to touch $221.4 billion, according to official data released by the Reserve Bank of India (RBI) from its latest annual survey on Computer Software and Information Technology Enabled Services (ITES) Exports.

When factoring in services delivered through the foreign affiliates of Indian technology enterprises, total software export receipts climbed 9.5% to reach $239.3 billion during the year. Local sales generated by overseas affiliates expanded to $17.9 billion, up from $13.9 billion reported in the preceding fiscal cycle.

The RBI survey encompassed responses from 2,363 operating entities out of 7,569 contacted software exporters, representing roughly 89% of the country’s total software export ecosystem.

Key Survey Findings

• Core Segments: Computer software and IT services remained the primary revenue driver, comprising over two-thirds of outbound billings at $147 billion. Business Process Outsourcing (BPO) and ITES accounted for $56 billion, led by specialized workflows in finance, taxation consulting, bookkeeping, and accounting. Software product development contributed $6.4 billion.
• Geographical Distribution: The United States retained its status as India's largest client base, securing a 54.1% market share with aggregate export billings increasing 11% to $119.7 billion. Europe formed the second-largest destination with a 31.8% share, where the United Kingdom accounted for 15.4% of total exports.
• Delivery Modes: Off-site cross-border delivery accounted for an overwhelming 91.7% of total export receipts. Conversely, on-site billings—where engineers deliver projects physically at international client facilities—slipped to $18.4 billion from $19 billion a year prior, mirroring tighter international immigration and visa conditions.
• Billing Currencies: The US Dollar dominated billing structures, capturing a 72.6% share of aggregate invoices. The Euro comprised 9.6%, while invoicing executed directly in Indian Rupees (INR) accounted for 6.3%, followed closely by the British Pound Sterling at 6.0%.

Domestic Enterprise Breakdown

Private limited technology outfits outperformed broader sectoral averages, clocking an export growth rate of 9.3% during FY26, while larger publicly listed IT vendors adjusted to extended enterprise sales cycles and selective client discretionary budgets.

Implications for Indian Investors

Software and IT services remain India’s foremost counterweight against merchandise trade deficits, now accounting for more than 53% of overall national services exports. For equity market participants tracking the Nifty IT index and domestic tech majors, the data confirms two pivotal trends:

Structural Shift to Offshore Execution: The compression of on-site delivery to $18.4 billion accompanied by the expansion of remote off-site billing to 91.7% highlights an ongoing operational margin buffer. Delivery from Indian development centers insulates operating margins from rising cross-border mobility costs and regulatory hurdles abroad.

Steady US Dollar Revenue Base: With nearly three-fourths of billings denominated in greenbacks, India's tech exporters remain key beneficiaries of steady currency realization, underpinning steady return-on-equity profiles and robust foreign-exchange reserves for the broader economy.

Tags: Reserve Bank of India Nifty IT IT Services BPO Software Exports Indian Economy