STPI Aims to Spread IT Sector Growth Nationwide

Syllabus: GS3/ Economy

Context

• The Software Technology Parks of India (STPI), is repositioning itself to drive the next wave of inclusive and innovation-driven IT growth across the country, especially targeting Tier-II and Tier-III cities.

Software Technology Parks of India (STPI)

• STPI is a body set up under the Ministry of Electronics and Information Technology in 1991 to promote the growth of
  • the IT/ITeS (Information Technology / Information Technology enabled Services) and 
  • ESDM (Electronics System Design and Manufacturing) industry in India.
• It was established to offer software certification, tax holidays and incentives and high speed data connections.
  • It played a key role in turning the infant IT sector into a major export-oriented industry.
• Headquarters: New Delhi
• Early Focus Cities: The initial STPIs were set up in Bengaluru, Pune, and Bhubaneswar, which played a pivotal role in the early development of the IT sector.
• Economic Contributions: As of the financial year 2024–25, STPI-registered units contributed software exports worth approximately ₹10.59 lakh crore (about $110 billion).
  • This amount constitutes over half of India’s total software exports, which exceed $200 billion.

Software Technology Parks of India (STPI) 2.0

• Wider Geographical Outreach: STPI has expanded to 67 centres across the country, significantly increasing its footprint beyond traditional metro cities.
  • Of the total centres, 59 are located in Tier-II and Tier-III cities, reflecting a conscious effort to spread IT growth to underrepresented regions.
• Decentralisation of IT Services: The initiative aims to bring IT-enabled services (ITeS), software development, and business process management (BPM) opportunities to smaller towns and cities.
• Targeting Youth and Local Entrepreneurs: By moving closer to educational institutions and smaller urban clusters, STPI seeks to empower youth and aspiring entrepreneurs with access to digital opportunities.
• Creation of Large-Scale Incubation Infrastructure: STPI has developed over 17 lakh square feet of incubation space to support emerging startups and tech ventures.
• Support for Startups and MSMEs: These incubation spaces are designed to accommodate micro, small, and medium enterprises (MSMEs), especially those focused on software products and services.

Policy Convergence and National Alignment

• STPI’s renewed mandate complements the Government of India’s flagship schemes like;
  • Under Digital India, STPI is expanding digital infrastructure to remote and underserved areas.
  • As part of Startup India, it is promoting early-stage innovation and entrepreneurship.
  • In line with the Make in India, STPI supports indigenous technology development and software production.

Way Ahead

• India’s global leadership in IT has so far been driven largely by service exports, which, while significant, offer limited value addition in the long term. 
• To remain competitive in the evolving digital landscape, the country must now pivot towards a robust software product-based economy. 
• The National Policy on Software Products (NPSP) 2019 rightly emphasises this transition by advocating for indigenous innovation and IP-led growth.

Source: TH