US now accounts for 54% of India's software services exports
What's the story
India's software services exports witnessed a growth of 8.2% to $221.4 billion in the fiscal year 2025-26 (FY26), excluding sales by overseas affiliates of Indian companies. The United States, a key player in this sector, saw its share rise to 54.1%, as per data released by the Reserve Bank of India (RBI) on Friday. The US accounted for over half of India's software services exports during this period, with exports to the country rising by 11% to $119.7 billion.
Market dominance
US share in India's software services exports
The US has strengthened its position as the largest overseas market for India's technology services companies.
The country's share in India's software services exports rose from 52.9% in FY25 to 54.1% in FY26.
However, this is not a new high for the US share; it was also at 54.1% in FY24 before declining the next year, according to RBI data.
Export statistics
UK remains second-largest destination
The UK remained the second-largest destination for India's software services exports, but its share fell slightly from 15.5% to 15.4%.
The RBI's annual survey on software services exports, which was released on September 18, covered computer services and IT-enabled services such as business process outsourcing.
It included responses from 2,363 companies, including most large operators, representing about 89% of the RBI's estimated software services exports.
Earnings drop
On-site earnings decline
Despite the overall increase in India's software exports, on-site earnings from these services have declined.
The RBI data shows that on-site earnings fell to $18.4 billion in FY26, down from $19 billion in the previous fiscal year.
On-site services are those where Indian tech employees work at clients' premises abroad while off-site services are provided remotely from development centers in India.