US Accounts For Over Half Of India’s Software Exports In FY26 As IT Services Shipments Rise To $119.7 Billion

India's software services exports to the United States increased by 11% in the fiscal year 2026, reaching $119.7 billion and accounting for 54.1% of the country's total overseas technology shipments, according to data released by the Reserve Bank of India. This represented a slight uptick from the 52.9% share recorded in FY25, although it had previously reached this level in FY24.

India's overall software services exports, excluding revenues generated through overseas subsidiaries, grew by 8.2% to $221.4 billion in FY26, with sales from overseas affiliates adding $17.9 billion more. The United States market expanded at a faster pace than overall exports, solidifying its status as the most crucial destination for Indian technology companies.

The United Kingdom maintained its position as the second-largest market, albeit with a modest decline in contribution to 15.4% from 15.5% in the prior year. The RBI survey, which covered computer services and IT-enabled services, including business process outsourcing, received responses from 2,363 companies out of 7,569 exporters contacted, accounting for nearly 89% of the estimated software service exports.

IT services constituted the largest contributor to software export growth, generating around $147 billion in exports, while business process outsourcing services contributed $56 billion. On-site services, which involve Indian technology professionals working at overseas client locations, declined slightly to $18.4 billion in FY26 from $19 billion in the previous year, though the RBI survey did not directly attribute this decline to visa regulations.

Despite overall growth in software exports, the RBI data did not establish a direct link between the decline in on-site earnings and trade tensions with the US.