India's outsourced software industry expanded by 9.5 per cent to reach $239.3 billion in total earnings during the financial year 2025/26, according to data from the Reserve Bank of India's annual survey of tech services firms. This growth comes despite industry warnings of potential "AI deflation" that could erode revenues as artificial intelligence automates work previously performed by human workers, though the figures suggest such economic pressure has yet to materialise significantly.

Direct service billings totalled $221 billion, with $147 billion derived from IT services and $56 billion from business process outsourcing, though software product development—the only category to decline—fell by just over $1 billion to $56.5 billion. The United States remained India's dominant market at $119.7 billion, followed by the United Kingdom at $34 billion, whilst the vast majority of services (91.7 per cent) were delivered remotely rather than on clients' premises. The survey, which extrapolated responses from 2,363 of 7,500 firms contacted, also identified $26.4 billion in revenues earned by foreign affiliates of Indian companies, underscoring India's position as the world's second-largest IT services exporter after Ireland.