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Fostering the Right Ecosystem-A Software Products-Led Approach

What is the current scenario of IT BPM industry in India?

1. The services-led and exports driven IT BPM industry has been valued at $181 billion.

2. It has reaped remarkable results and in turn, India has become a global powerhouse in the IT Services sector.

3. According to NASSCOM Strategic Review, software products segment stands at 7.1 billion dollars, FY 2018 of which the domestic market is at 4.8 billion USD.

How is digital industry useful for India? 

1. Digital industry is a force multiplier.

2. It enables exponential growth in all other sectors like telecom, e-commerce, domestic electronic manufacturing, digital payments and direct subsidy transfers.

3. The Digital economy is currently about 200 billion dollars annually and is estimated to fetch trillion dollars by 2025.

4. There are about 4000 software product companies of large, small and mid-size and even MNCs in India

Which are the features of the National Policy on Software Products (NSP 2019)?

1. Its vision is to expand Indian software products market by ten-fold in the next 5-6 years.

2. A dedicated Software Product Development Fund (SPDF) has been created to meet the capital needs of the industry and to scale up market ready software products.

3. On the lines of venture funds, it will provide risk capital to enable the creation of at least a 100 Indian software product companies having a valuation of Rs.500 crore employing 200 people.

4. The focus is on creating Intellectual Property and addressing societal challenges through technology in areas like education, healthcare, sanitation, agriculture, Divyangjans etc. in a participative manner to include all stakeholders.

5. The government will be initiating two incubation schemes, namely:

a. Technology Incubation and Development of Entrepreneurs (TIDE) 2.0 with a budgetary outlay of Rs.264 crore for software product development aimed at the societal sectors.

b. Next Generation Incubation Scheme (NGIS) with a corpus of Rs.95 crore, for Tier II and III software product companies based out of STPI (Software Technology Parks of India).

6. 20 domain specific Indian software product clusters will be initiated, in textile, financial services, energy etc.

7. These clusters will have integrated ICT infrastructure, marketing, incubation, R&D/test beds and mentoring support for at least 500 technology start-ups.

8. Through its Future Skills PRIME initiative, government will aim to upskill/reskill 3-3.5 million people.

9. A Talent Accelerator program will be addressed towards engineering and other STEM (Science, Technology, Engineering and Mathematics) talent in India.

Where is the way ahead?

1. The On-Premise model is being replaced by Cloud technology which necessitates Periodic upgradation of software products as well.

2. Towards Ease of Doing Business, a single repository of all laws and regulations applicable to the software product industry should be created.

3. An exclusive Innovation Fund must be setup to promote innovation in domestic product companies.

4. Public Private Partnership towards creating testing labs and centres of excellence is needed.

5. Investors must be suitably incentivized to set up this kind of expansive infrastructure.