STP Units Drive India’s IT Exports to US$87.57 Billion in FY 2025-26

India’s Software Technology Park units reported strong export growth in FY26, reflecting rising demand for IT services and continued expansion of the country’s digital economy.

STP Units Record US$87.57 Billion in Exports in FY 2025-26

India’s Software Technology Park (STP) units continued their strong performance in the technology export sector, recording estimated exports of Rs. 7,73,898.97 crore (US$87.57 billion) during FY 2025-26.

The figure represents a significant increase from the Rs. 6,88,194.11 crore (US$81.40 billion) recorded in FY 2024-25.

The latest numbers highlight the continued growth of India’s IT and IT-enabled services ecosystem and its importance to the country’s export economy.

STP Export Value Continues to Rise

The export performance of STP units has maintained an upward trend over the past few years.

In FY 2023-24, exports stood at around Rs. 6,36,619.87 crore (US$76.90 billion). This increased to Rs. 6,88,194.11 crore in FY25 before reaching Rs. 7,73,898.97 crore in FY26.

The growth indicates continued demand for Indian software, technology and IT-enabled services in international markets.

More STP Units Added in FY26

The number of registered STP units also increased during the year.

• FY 2023-24: 2,059 units

• FY 2024-25: 2,042 units

• FY 2025-26: 2,125 units

The increase in the number of units, along with higher exports, reflects the expanding participation of technology companies in India's export-oriented IT ecosystem.

Karnataka Leads India’s STP Export Performance

Karnataka remained the largest contributor to STP exports during FY26.

The state recorded estimated exports of Rs. 3,50,184.78 crore (US$38.91 billion).

Maharashtra ranked second with exports of Rs. 1,62,594.11 crore (US$18.07 billion).

Telangana followed with Rs. 1,13,101.83 crore (US$12.57 billion), while Tamil Nadu recorded approximately Rs. 60,591.28 crore (US$6.73 billion).

Major Export-Contributing States

The performance of these states highlights the concentration of India's technology ecosystem in established IT and business centres.

Their strong contribution also reflects the availability of skilled talent, technology infrastructure, established companies and supporting business ecosystems.

Investment and Imports by STP Units

Along with export growth, STP units also recorded significant investment during FY26.

Estimated investment reached Rs. 7,362.86 crore (US$817 million).

Estimated imports during the year stood at around Rs. 9,960.26 crore (US$1.11 billion).

The investment indicates continued spending on technology infrastructure and other resources required to support India's growing IT export industry.

What Is the STP Scheme?

The Software Technology Park (STP) Scheme is a 100% export-oriented programme designed to support software and IT-enabled services exports from India.

The scheme provides technology companies with support for export-related regulatory and statutory procedures.

Software Technology Parks of India (STPI) plays an important role in implementing the scheme and provides several statutory services through a single-window system.

This approach is intended to make compliance easier for technology businesses and reduce the administrative challenges associated with exporting software and IT services.

Digitalisation Makes STP Compliance Easier

STPI has introduced several digital measures to simplify statutory procedures for exporters. Services such as SOFTEX filing, approvals and final intimation have been automated, reducing the need for manual processes.

The online system has also been integrated with the Reserve Bank of India’s Export Data Processing and Monitoring System (EDPMS).

Near Real-Time Export Data Transmission

The integration enables export declaration information to be transmitted through digital systems on a near real-time basis.

Such automation can help businesses reduce paperwork, improve transparency and make export-related reporting more efficient.

For technology companies handling large volumes of international transactions, faster digital compliance can contribute to a smoother business environment.

Import Procedures Also Simplified

STPI has also taken steps to simplify procedures related to imports.

Earlier, businesses could require permissions on a case-by-case basis. Under the revised approach, blanket permissions for the relevant financial year have been introduced for applicable import procedures.

This can reduce repeated administrative work for eligible businesses.

Easier Domestic Tariff Area Sales

Another change involves sales to the Domestic Tariff Area (DTA). In most applicable cases, the earlier requirement for prior approval has been replaced by a self-declaration process.

This allows eligible units to complete the process with less administrative intervention.

Strengthening India’s IT Export Ecosystem

The combination of rising exports and simplified regulatory procedures could further strengthen India's position as a major global technology services hub.

Indian IT companies have built a strong international presence across software development, business process services, digital solutions and other technology-related areas.

As global demand for digital services continues to evolve, India's large talent pool and established technology ecosystem could support further export growth.

Focus on Ease of Doing Business

The reforms introduced by STPI are also aligned with efforts to improve the ease of doing business for technology exporters.

Automating approvals, simplifying import procedures and introducing self-declaration mechanisms can reduce compliance costs and minimise manual intervention.

For smaller technology companies and new exporters, simpler procedures could make it easier to participate in international markets.

Outlook for India’s Technology Exports

The strong FY26 performance of STP units demonstrates the growing importance of software and IT-enabled services in India's export economy.

With exports crossing US$87.57 billion, an expanding number of STP units and continued regulatory digitalisation, the sector is positioned for further development.

Future growth will depend on India's ability to maintain its skilled workforce, invest in emerging technologies, improve infrastructure and respond to changing global demand.

Conclusion

India’s STP units achieved estimated exports of US$87.57 billion in FY 2025-26, marking another year of strong growth for the country’s IT export ecosystem. With Karnataka, Maharashtra, Telangana and Tamil Nadu leading the contribution, the sector continues to demonstrate India’s strength in technology services. At the same time, digital compliance and simplified regulatory procedures could make it easier for businesses to expand their international operations.