What US Businesses Should Know About India's $300 Billion Tech Industry

The scale US companies are already plugged into

India’s technology is becoming an important part of software development for US companies. The annual survey, which was released in November 2025, of the Reserve Bank of India's 2024-25 software and IT-enabled services exports says Indian companies exported $204.7 billion in software services in FY2025. 52.9% of these exports are from United states, it is becoming the largest market for Indian software services and Europe comes after this on the second with 32.8%. In other words, more than half of Indian software services go to US companies from India.

Indian tech industry is even larger than this; as per the NASSCOM's Strategic Review, in FY2025, the total revenue of India’s tech industry was around $282.6 billion. It has grown by 5.1% compared to last year and in FY2026 is estimated to cross $300 billion. It has reached 5.8 million employees, with around 126,000 new employees in just one year.

A shift worth watching, not worrying about

The RBI’s data also shows some important facts. It shows that in FY2025, Indian software exports have grown by 4.9% to the US and 14.3% to Europe in the same year. This clearly shows that Europe’s share has increased from 30.8% to 32.8% and the US share decreased from 54.1% to 52.9%. This does not mean that US demand is also decreasing; the US is still the largest buyer of Indian software services, with the largest share. This means that demand from other countries is also increasing.

For US companies that are planning to work with Indian teams or are working with them this is important to know that more companies are looking for the same talent from the same market. This is the fact that building a strong and direct relationship with an Indian development partner can be more important, instead of just thinking that the same talent will always be easily available on the same terms.

What this means for a US company choosing a development partner

According to NASSCOM, engineering R&D and global capability centers are the important areas that are responsible for the growth of India’s technology industry, instead of growth that is only coming from basic staff support. In FY2025, Engineering R&D is only responsible for an estimated $55.7 billion.

For US businesses, India’s technology sector is not only focusing on providing lower-cost development services, but it is also growing in advanced engineering and R&D work. For Indian software services, US companies make up the largest share of demand. Instead of short-term outsourcing, India’s growing engineering and R&D capabilities can help companies that are looking for a long-term development partnership.

How EICE Technology supports US businesses building software

As an Indian IT company, we work in the same technology industry that many US companies already use for their software development. Our teams have hands-on experience in custom software development, AI application development and cloud engineering. We follow a structured process that is supported by ISO 27001 and ISO/IEC 20000 certifications, along with CMMI Level 3 and ISO 9001. If your team is looking for a development partner with this kind of engineering experience, we’d welcome the conversation. See more on our Services Page