BENGALURU: India's dependence on the United States for software and IT services exports declined in FY25, while Europe's share increased, according to the Economic Survey 2025–26.
The Survey shows that the US share of India's software exports fell from 54.1% in FY24 to 52.9% in FY25. During the same period, Europe's share rose from 30.8% to 32.8%.
"While the US remains the largest destination for software exports from India, its share has decreased," the Survey said, noting a corresponding rise in exports to Europe.
The shift comes even as overall software services exports continued to grow.
The Survey notes that software services exports increased by 7.3% year-on-year in FY25, following a slower growth of 2.3% in FY24. Software services account for more than two-thirds of India's total software exports, making them the largest component of the country's services trade.
The Survey also estimated that overall IT services exports grew by 3.7% in FY25, continuing to act as a stabilising force for India's external sector.
The Economic Survey said the services surplus driven largely by IT, business and professional services remains a key support for India's external sector. It added that India's growing role as a global hub for Global Capability Centres (GCCs) has supported export resilience and diversification.
As of FY24, India hosted more than 1,700 Global Capability Centres, employing over 19 lakh professionals, making it the largest global hub for captive centres, the Survey noted.
The Survey also highlighted the fact that India's services trade surplus amounted to $151.7 billion, offsetting 61.1% of the merchandise trade deficit, underlining the continued importance of IT and services exports to the economy.