New Delhi. The United States remained the largest overseas market for India’s software services in fiscal 2025-26. According to available data, the US purchased nearly $120 billion (nearly ₹11.5 lakh crore) worth of software services from India during the year. Its share of India’s total software services exports rose to 54.1%, highlighting the continued importance of the American market for Indian IT companies.
During FY26, the US recorded an increase in its share of India’s software services exports. The figures underline the position of the American market as a major business destination for Indian IT and software services companies. Indian firms provide a wide range of services in the US, including information technology services, consulting, digital solutions, software development and other technology-related offerings.
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The nearly $120 billion figure highlights the scale of the US market for India’s software services industry. India has long been a major global hub for software and IT services. Competitive costs, a large pool of technology professionals and expertise across multiple sectors have helped Indian companies maintain a strong presence in the US market.
The rising share of the US market is significant for India’s IT sector in several ways. On one hand, it gives Indian companies access to a large global market. On the other, greater exposure to the US economy and business environment means changes there can have a direct impact on Indian IT companies. Any increase or decline in technology spending by American businesses can also influence India’s software services exports.
Apart from the US, Europe and other developed economies remain important markets for India’s software services industry. However, with a 54.1% share of total exports in FY26, the US accounted for more than half of India’s software services exports. The figure underlines the importance of contracts secured from American companies and institutions for India’s IT services business.
The Role of the US in Indian IT Companies’ Business
Several major Indian IT services companies have long relied heavily on clients in the US. American companies in banking, financial services, healthcare, retail, manufacturing and technology use Indian IT service providers for a variety of requirements. These include software development, cloud services, cybersecurity, artificial intelligence, data management and technology-enabled business processes.
In recent years, the rapid adoption of technologies such as artificial intelligence and automation has also changed the business models of IT services companies. Indian firms are increasingly focusing not only on traditional software services but also on offerings linked to emerging technologies. Growing investment in these technologies in the US could create additional opportunities for Indian service exporters.
However, greater dependence on the US market also brings certain risks. Changes in economic growth, corporate technology budgets, trade policies and visa regulations in the US can affect the business of Indian IT companies. As a result, Indian firms are also focusing on diversifying their customer base and expanding across different geographical markets.
The 54.1% share of the US market in India’s software services exports during FY26 underlines the scale of America’s role in the country’s technology services industry. With nearly $120 billion worth of services purchased from India, the US remained one of the key revenue markets for Indian IT companies. Going forward, demand for artificial intelligence, cloud computing and digital services is expected to remain among the factors shaping technology services trade between the two countries.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
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