KARNATAKA: INDIA'S LEADING SOFTWARE AND SERVICES EXPORTER

NEWS: Karnataka retains its position as India's leading software and services exporter in FY 2025–26, recording exports worth approximately $173 billionà The state also ranked fourth in merchandise exports with exports valued at $34 billion.

Key Highlights

  • Total software & services exports: $173 billion
  • Mrchandise exports: $34 billion (4th highest in India)
  • Overall growth in software, services & merchandise exports: 3%
  • Karnataka accounts for 41% of India's total software and services exports
  • Continues to be the country's leading technology and innovation hub

Comparison with Other States

  • Karnataka: 41% share of India's software & services exports
  • Maharashtra: 16%
  • Tamil Nadu: 5%Uttar Pradesh: 5%
  • Andhra Pradesh: 1%
  • Gujarat: 9%

Sector-wise Eport Growth

The highest growth in merchandise exports was recorded in:

  • Iron ore & minerals: +61%

  • Chemicals & allied products: +56%
  • Engineering goods: +28.9%
  • Leather products: +28.5%
  • Spices: +24.5%

These figures indicate increasing global demand for Karnataka's industrial and agricultural products.

Factors Behind Karnataka's Success

  • Strong IT ecosystem centered in Bengaluru
  • Presence of leading technology, biotech, and electronics companies
  • Growing manufacturing and aerospace sectors
  • Availability of skilled workforce and research institution
  • Strong innovation and startup culture

Significance

  • Strengthens Karnataka's reputation as India's economic and technology powerhouse
  • Enhances foreign exchange earnings and investment opportunities
  • Generates employment and entrepreneurial opportunities
  • Expands Karnataka's global footprint in both services and merchandise exports
  • Supports India's ambition to become a major global technology and manufacturing hub