§1How big it is
Software services exports grew 7.3% year-on-year in FY25 (RBI survey); computer services were over two-thirds of software services exports
PIB backgrounder: Union Budget FY 2026-27 - A Push for India's Services Exports (14 Mar 2026)Services exports USD 348.4 billion in Apr-Jan FY26; software services are the largest component (over 40%)
PIB backgrounder: Union Budget FY 2026-27 - A Push for India's Services Exports (14 Mar 2026)
§2Ways to get started
- Web/app development agency
- Niche SaaS for Indian MSMEs (billing, inventory, compliance)
- Back-office / bookkeeping outsourcing for overseas clients
- Data annotation and AI services
- Digital marketing agency
§3Hubs and clusters
- Bengaluru, Hyderabad, Pune, Chennai, NCR (Gurugram/Noida), Mumbai - well-known IT hubs (STPI centres across states)
§4Licences and registration
- STPI registration (optional, for STP scheme benefits and export certification)
- SEZ unit approval (if in an IT SEZ)
- Shops & Establishment registration; Professional tax (state)
- Compliance with DPDP Act 2023 for personal data processing
- OSP registration requirement was removed in 2021 for BPO/call centres (DoT liberalised guidelines)
- GST registration; export of services as zero-rated supply (LUT filing)
§5Regulators
- MeitY
- STPI (Software Technology Parks of India) - STP/SEZ registration
- DPDP Act 2023 / Data Protection Board (personal data)
- CERT-In (incident reporting)
- RBI (if fintech/payments)
§6Government help
- Startup India (DPIIT recognition, tax holiday u/s 80-IAC, SISFS, Fund of Funds)
- STPI incubation and NGIS (Next Generation Incubation Scheme)
- Safe harbour rules for IT services (threshold raised from Rs 300 crore to Rs 2,000 crore in Budget 2026-27)
- Credit Guarantee Scheme for Startups
- MeitY Startup Hub / SAMRIDH
- Cross-sector schemes that also apply (detailed in the programmes file): Udyam benefits, PMEGP, PM Mudra Yojana, CGTMSE credit guarantee, Stand-Up India, MSE-CDP (cluster development), RAMP, MSME ZED and Lean certification, MSME Champions, TReDS, Startup India (SISFS seed fund, Fund of Funds, CGSS), RoDTEP, EPCG, Advance Authorisation, Districts as Export Hubs, ODOP (One District One Product)
§7For exports
- ESC - Electronics and Computer Software Export Promotion Council
- STPI
§8Pros and cons
Merits
- Very low capital; export income is zero-rated for GST
- Budget 2026-27 simplified safe harbour for IT services [PIB Mar 2026]
Demerits
- Talent cost and attrition
- Global demand slowdowns and AI automation pressure on services pricing
- Data protection compliance (DPDP Act) adds obligations