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    STPI Aims to Spread IT sector Growth Nationwide

    STPI is expanding IT growth to Tier-II & Tier-III cities through incubation centers, startup support, and infrastructure, aiming to build a product-based digital economy aligned with the National Policy on Software Products 2019.

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    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.

    About Software Technologies Park of India

    • 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

    Services Provided by STPI

    • Infrastructure Support: Provides plug-and-play office space with IT infrastructure for software exporters.
    • Customs Clearances: Facilitates duty-free imports of capital goods, consumables, and other goods necessary for software export.
    • Statutory Compliance: Ensures compliance with export regulations and assists companies in meeting their export obligations.
    • Consultation and Guidance: Offers advice and support on matters related to exports, tax exemptions, and regulatory issues.

    Software Technology Park Of India 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.

    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.
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