India’s Software Exports Rise 7.3% to $204.7 Billion, Europe Gains as U.S. Growth Slows: RBI

India’s software and IT-enabled services (ITES) exports grew 7.3% to $204.7 billion in FY2024–25, driven by strong demand for computer and business process outsourcing (BPO) services, according to the Reserve Bank of India’s annual survey released on Monday.

While the overall momentum remained positive, the data revealed a shifting geographical pattern. Exports to the United States, which account for over half of India’s software services revenue, grew at a slower pace of 4.9%, while exports to Europe surged 14.3%, expanding the region’s share in India’s total software exports from 30.8% to 32.8%. The U.S. share slipped from 54.1% to 52.9%, marking a gradual diversification of India’s IT export base.

Computer services continued to dominate, forming more than two-thirds of total exports, while ITES — including call centres, technical support, and back-office operations — remained another major contributor.

Private limited firms outpaced their larger peers with 11.6% growth in exports, compared to a modest 1.3% rise among public limited companies. The survey, covering 6,766 companies (with 2,206 responses representing about 90% of total exports), paints a picture of sustained expansion despite global economic headwinds.

The report also underscored India’s dependence on the U.S. dollar, with nearly 72% of invoices denominated in it. The euro (9.6%), Indian rupee (7.1%), and British pound (6%) followed as other major invoicing currencies.

Interestingly, off-site services—those delivered remotely from India—rose marginally to 90.7% of total exports, reinforcing the country’s dominance in remote delivery models that became even more entrenched post-pandemic.

When accounting for services delivered through overseas commercial arms of Indian companies, total software exports stood at $218.6 billion, reflecting a 6.5% increase from the previous year.

The RBI’s findings come amid a period of global uncertainty for tech demand, with U.S. clients tightening spending while European markets are turning into growth drivers. Analysts say this trend highlights the industry’s ability to rebalance geographically even as cost pressures and geopolitical risks reshape outsourcing dynamics.