At $147 billion, IT services made up the biggest component of the $221.4 billion of software services exports, followed by BPO services at $56 billion. (Representational: FreePik)In a year in which the US started a global trade war starting with its Liberation Day tariffs that targeted import of goods, the world’s largest economy became an even bigger destination for India’s software services exports, stretching its lead over the UK.According to data released Friday by the Reserve Bank of India, India’s software service exports to the US rose 11% to $119.7 billion in 2025-26, accounting for 54.1% of all such exports last year. In 2024–25, the US’ share was 52.9%.In second place was the UK, whose share slipped slightly to 15.4% from 15.5%.All in all, India’s software services exports in 2025-26 amounted to $221.4 billion, up 8% from the previous year. This figure does not include the $17.9 billion of sales made by foreign affiliates of Indian companies.The money Indian companies got from offering their software services ‘on-site’ reduced to $18.4 billion in 2025–26 from $19 billion the previous year, indicative of the tightening visa norms.In on-site services, engineers and other personnel work directly at the client’s office and not remotely from their own country.Announced on April 2, 2025, the Liberation Day tariffs announced by US President Donald Trump wreaked havoc on global trade. And while they were subsequently struck down by the US Supreme Court, the Trump administration continues to try and find ways to levy import duties on foreign goods.Story continues below this adIndian goods at one point faced a tariff of 50% to enter the US. This was after the initial rate was doubled for India’s purchase of arms and oil from Russia.Consequently, India’s goods exports to the US rose by just 0.9% in 2025-26 to $87.31 billion, according to commerce ministry data. This was in line with India’s overall goods export growth of 0.9% to $441.45 billion. The US accounted for 20% of India’s goods exports in the last fiscal.Meanwhile, India’s overall services exports increased by 9% to $421.29 billion. As such, software services made up 53% of India’s services exports last year.At $147 billion, IT services made up the biggest component of the $221.4 billion of software services exports, followed by BPO services at $56 billion. Export of software product development was just $6.4 billion.Story continues below this adThe results are based on the RBI’s annual survey on computer software and information technology enabled services exports. The central bank contacted 7,569 software export companies for the survey, of which it got responses from 2,363 companies, including most large companies. The companies that responded made up around 89% of India’s total estimated software services exports.Siddharth Upasani is a Deputy Associate Editor with The Indian Express. He reports primarily on data and the economy, looking for trends and changes in the former which paint a picture of the latter. Before The Indian Express, he worked at Moneycontrol and financial newswire Informist (previously called Cogencis). Outside of work, sports, fantasy football, and graphic novels keep him busy. ... Read More Tags:software