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India’s IT-export industry generated an estimated US$224 billion in export revenue in FY2025, according to NASSCOM. That headline covers a broad technology industry, not just software shipped from Indian data centres. The export is usually an intangible service delivered across a network, through an overseas affiliate or by staff working temporarily abroad.

The business is therefore two linked operations: delivering software, engineering, business-process and related technology work, then invoicing foreign customers and converting those receivables into realised, repatriated cash under India’s foreign-exchange rules.

First, define “India’s IT exports”

Different institutions use different denominators. NASSCOM’s industry estimate is broad; the Reserve Bank of India (RBI) survey is a narrower measure of software services supplied by Indian companies. Treating the figures as interchangeable makes the industry look either larger or smaller than the underlying activity.

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Measure Figure and period Scope
NASSCOM industry exports US$224 billion, FY2025 Broad technology-industry exports; about 79% of industry revenue. NASSCOM’s framing covers IT services, BPM, engineering research and development, software products and hardware.
RBI software-services exports by Indian companies US$190.7 billion, 2023-24 Company exports reported in the RBI survey, excluding sales made through overseas commercial presence.
RBI total including commercial presence US$205.2 billion, 2023-24 The US$190.7 billion company-export figure plus US$14.5 billion in software business conducted through foreign affiliates.

“IT exports” is therefore an industry shorthand. “Software-services exports” is a more specific statistical category. Every comparison should identify which one it uses.

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How much does India earn from IT exports?

NASSCOM’s annual series shows export revenue of US$178 billion in FY2022, US$194 billion in FY2023, US$200 billion in FY2024 and an estimated US$224 billion in FY2025. The FY2025 number is an industry estimate, not a cash statement from every exporter.

A Government of India Press Information Bureau release in 2025 estimated FY2024-25 total IT-industry revenue at US$283 billion, of which US$224 billion was export revenue. For comparison, FY2014-15 total revenue was reported at US$118 billion and export revenue at US$100 billion. These figures describe the broad industry and should not be substituted for the RBI’s narrower survey.

The RBI’s 2023-24 survey found US$190.7 billion in software-services exports by Indian companies. When foreign-affiliate commercial presence is counted, the total reaches US$205.2 billion. The gap between that result and NASSCOM’s US$224 billion estimate reflects scope, method and timing differences rather than a contradiction.

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What India sells

The RBI breakdown shows where the software-services total comes from:

Service line Exports, 2023-24 What the category represents
IT services US$125.5 billion Technology delivery and services supplied to overseas customers.
Business-process outsourcing (BPO) US$50.1 billion IT-enabled business and process operations performed for foreign clients.
Engineering services US$9.6 billion Engineering and related research or development work delivered internationally.
Software-product development US$5.5 billion Development of software products for export markets.

NASSCOM’s wider industry framing also includes hardware. That is why a broad “IT-industry export” number cannot be read as the value of Indian-made software products alone.

How an IT service becomes an export

An export does not require a box containing software to leave India. The RBI classifies the supply route by how the customer receives the service:

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Mode 1: cross-border supply US$171.3 billion Work is performed in one country and supplied digitally or otherwise across the border to a customer in another.
Mode 2: consumption abroad US$0.3 billion The customer consumes the service while present in the supplier’s country.
Mode 3: commercial presence US$14.5 billion An Indian company’s foreign affiliate conducts local software business for customers in that market.
Mode 4: presence of natural persons US$19.1 billion Indian personnel travel or remain temporarily abroad to supply the contracted service.

Mode 1 dominates, but the other modes explain why an Indian exporter may have overseas offices, a foreign subsidiary and travelling project staff while still serving one international delivery model. The US$205.2 billion RBI total including commercial presence reflects these channels together.

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Who buys Indian IT services?

The United States, the United Kingdom and the European Union together account for roughly 90% of exports in NASSCOM’s FY2025 presentation. That concentration helps explain the scale of Indian providers: large, mature client markets support recurring technology and business-process contracts.

NASSCOM identifies Asia-Pacific, Latin America, the Middle East, Japan, China and Africa as diversification opportunities. They are strategic directions, not evidence that any of those regions already matches the combined scale of the US and Europe.

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How Indian software companies get paid

Delivery and payment are separate milestones. A project can be accepted by a client while the exporter is still waiting for an invoice to be paid, for the foreign currency to be received through the banking system and for the proceeds to be realised and repatriated in accordance with Indian rules.

  1. Agree the commercial terms. The contract defines the service, milestones, acceptance method, invoice currency, payment window, taxes, withholding treatment and the legal entity that will bill the customer.
  2. Deliver and document performance. The exporter supplies code, access, reports, support or other contracted work and keeps acceptance records. Those records support the invoice and any later bank or regulatory query.
  3. Issue the export invoice. RBI’s Master Direction on export of goods and services covers software-export invoicing and the related declaration requirements. The invoice should identify the exporter, customer, service description, amount and currency consistently with the contract.
  4. Receive the money through an authorised channel. The customer pays by the agreed cross-border banking route. The exporter’s authorised dealer bank handles receipt, currency conversion or retention, and reporting required for the transaction.
  5. Complete realization and repatriation. RBI rules cover the manner of receiving and making payments, realization of export proceeds, repatriation to India and the use of permitted foreign-currency accounts. A signed contract or issued invoice is not the same thing as realised export proceeds.
  6. Reconcile the receivable. Finance teams match the bank credit to the invoice, account for bank charges and withholding, record the exchange rate used, and follow up on any short payment, dispute or overdue balance.

The exact time from invoice to cash depends on the contract, acceptance process, client and banking route. The cited industry sources do not publish a universal average delay, bad-debt rate or cash-collection failure rate, so no single waiting period should be assumed.

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Why “chase the cash” is an operating issue

  • Foreign exchange: An invoice denominated in US dollars, euros or pounds can be worth a different rupee amount when it is received and converted.
  • Multiple entities: Work may be delivered from India but billed by an overseas affiliate, or staff may supply part of the service on site. The entity receiving the customer payment and the entity carrying delivery costs must be reconciled.
  • Acceptance evidence: Milestone billing often depends on client sign-off. Missing acceptance records can delay an otherwise valid invoice.
  • Withholding and deductions: A customer’s local tax withholding, bank fee or contractual credit changes the amount that arrives and must be matched to the invoice.
  • Compliance: Export declarations, payment records, realization and repatriation obligations sit alongside ordinary accounts-receivable work.
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Are India’s IT exports still growing?

On NASSCOM’s broad measure, export revenue rose from US$178 billion in FY2022 to an estimated US$224 billion in FY2025. The Economic Survey of India 2025 separately reported about US$200 billion in tech exports for FY2024, total tech revenue of about US$254 billion and domestic revenue above US$54 billion. Because the estimates use different reporting frames, the fiscal year and definition should accompany every figure.

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The sector’s macroeconomic footprint is also large. The Economic Survey reported 5.43 million technology employees in FY2024 and said India supplied 10.2% of global telecommunications, computer and information-services exports in 2023, ranking second. That global-share measure covers services beyond the narrow IT-export total.

For current trade context, the RBI recorded US$36.857 billion in services receipts and US$17.781 billion in services payments in December 2024. Those are all-services monthly figures, not IT-only export numbers, so they cannot be used to infer a one-month IT total.

A practical control list for an Indian IT exporter

  • State whether management is reporting NASSCOM-style industry exports or RBI software-services exports.
  • Separate India-delivered Mode 1 work from revenue booked through foreign commercial presence and personnel abroad.
  • Keep the contract, acceptance evidence, invoice, bank credit advice and foreign-exchange records linked to one receivable.
  • Track billed, received, realised and repatriated amounts as different statuses.
  • Report the currency, conversion date, withholding and bank charges with the rupee value.
  • Review the current RBI Master Direction and authorised-dealer instructions before changing payment routes or foreign-currency-account arrangements.

India’s export advantage is built on the ability to deliver software and technology work at global scale. Its financial discipline is demonstrated only when that delivery is invoiced correctly, paid by the customer and converted into compliant, usable cash.

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