India’s Outsourced Software Industry Hits $239 Billion with 9.5% Growth

India’s software-services exports rose nine-point-five percent to two hundred thirty-nine point three billion dollars in financial year twenty twenty-five...

Key Takeaways
  • India’s software-services exports reached two hundred thirty-nine point three billion dollars in financial year twenty twenty-five to twenty twenty-six.
  • Cross-border supply generated two hundred two point seven billion dollars, or eighty-four point seven percent of the total.
  • The United States received fifty-four point one percent of exports; reported service-category amounts exceed the headline total by twenty point two billion dollars.

The Reserve Bank of India put software-services exports at $239.3 billion in financial year 2025–26, a 9.5% increase from the previous year. Its annual survey covers computer software and information-technology-enabled services exports.

A narrower measure came in lower. Exports excluding overseas commercial presence rose 8.2% to $221.4 billion, separating cross-border activity and other reported supply from business conducted through overseas affiliates.

India’s Outsourced Software Industry Hits 9 Billion with 9.5% Growth
India’s Outsourced Software Industry Hits $239 Billion with 9.5% Growth

The survey was released in September 2026, with figures reported on September 18 and September 19. The $239.3 billion headline includes the local software business of foreign affiliates of Indian companies.

The two totals describe different scopes. They should not be read as competing estimates of the same export measure.

Cross-border supply made up 84.7% of the export total

Cross-border supply generated $202.7 billion, or 84.7% of the overall amount. The survey also counted commercial presence and services supplied through natural persons.

Supply channelValue
Cross-border supply$202.7 billion
Commercial presence$17.9 billion
Supply through natural persons$18.4 billion

The affiliate component rose to $17.9 billion from $13.9 billion a year earlier, an increase of $4 billion. The United States and United Kingdom remained the main destinations for those affiliate sales.

Delivery location is another measure. Off-site work accounted for 91.7% of software-services exports, indicating that most reported services were delivered away from the customer’s premises.

The United States took 54.1% of software-services exports

The United States accounted for 54.1% of exports, while Europe represented 31.8%. The United Kingdom’s share was 15.4%.

MarketShare
United States54.1%
Europe31.8%
United Kingdom15.4%

The figures identify the largest reported market and the regional shares. They sit apart from the affiliate-sales measure, which names the United States and United Kingdom as leading destinations for that business.

The service-category amounts exceed the export total

Reported service-category figures put IT services billings at $147 billion and business process outsourcing at $56 billion. Software product development stood at $56.5 billion and was described as the only category to decline.

Service categoryAmount
IT services billings$147 billion
Business process outsourcing$56 billion
Software product development$56.5 billion

Together, those amounts total $259.5 billion, which is $20.2 billion above the $239.3 billion export figure. The reported figures do not provide a reconciliation between the category sum and the headline export total.

Software services represented 53 percent of services exports

Total services exports reached $421.29 billion, with software services accounting for 53 percent. That places the software figure within the broader services trade measure.

A September 17, 2026 analysis estimated software-services exports at about 5.2 percent of GDP, up from 3.3 percent before the pandemic. It put software and business services together at about 8.5 percent of GDP. These are estimates of economic scale, not additional export totals.

Industry reporting also put sales growth at Indian IT services companies at 8.2 percent in FY25/26. A smaller share of that revenue went into software product development, the category identified as the only one to decline.

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Shashank Singh

Shashank Singh reports on India and South Asia immigration for VisaVerge.com, with a strong focus on international students and the Indian diaspora — from F-1 study routes and student safety to news affecting Indians abroad and in the Gulf. He delivers timely, accurate coverage and presents complex developments in an accessible way. Shashank keeps VisaVerge's large South Asian readership at the forefront of the news that matters to them.