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Policy for Promotion of Software Exports

As per National Association of Software & Services Companies (NASSCOM), exports from Indian Information Technology/ Business Process Management (IT/ BPM) sector over the last three years are as under:

S. No. Financial Year (FY) Exports (in USD Billion)
1. 2019-20 149
2. 2020-21 152
3. 2021-2022(E) 178

 

The contribution of different states to software exports by Software Technology Parks of India (STPI) registered units and Special Economic Zone (SEZ) units in the last three financial years are as per Annexure I and II respectively.

The Government has been undertaking steps to promote broad based growth across a wide range of high potential services sectors including Information Technology/Information Technology Enabled Services (IT/ITES). The ‘Action Plan for Champion Sectors in Services’ to give focused attention to 12 identified Champion Services Sectors, namely, Information Technology & Information Technology enabled Services, Tourism & Hospitality Services, Medical Value Travel, Transport &Logistics Services, Accounting and Finance Services, Audio Visual Services, Legal Services, Communication Services, Construction and Related Engineering Services, Environmental Services, Financial Services and Education Services has been approved to support sectoral initiatives of the Nodal Ministries/Departments identified for these sectors.

The Government had also launched Software Technology Park (STP) that is a 100% export-oriented scheme for the development and export of computer software using communication links or physical media and including export of professional services. The unique feature of STP scheme is provisioning of Single-Point Contact Services for the member units enabling them to conduct export operation at a pace commensurate with international practices. The incentives provided under the STP Schemes are as follows:

  • Exemptions from payment of duty of customs/integrated tax and compensation cess on imported capital goods
  • Refund of GST on procurement of capital goods from DTA
  • Import of second-hand capital goods is also permissible
  • Domestic Tariff Area (DTA) sale permissible
  • Depreciation on computers at accelerated rates up to 100% over 5 years is permissible.
  • 100% FDI investment permitted through automatic route

The Government of India’s objective is to take up digital opportunities in the smaller cities and towns across the country to create employment opportunities in Information Technology/ Information Technology Enabled Services (IT/ITES) Sector. Toward this objective, a total of 63 centres of STPI has been set up across the country out of which 55 centres are located in Tier 2 and Tier 3 cities.

Government of India in collaboration with National Association of Software and Service Companies (NASSCOM) has also initiated a programme titled Future Skills PRIME (Programme for Re-skilling/Up-skilling of IT Manpower for Employability) aimed at re-skilling/ up-skilling of IT professionals from various cities including tier II and tier III in 10 new/emerging technologies namely Artificial Intelligence, Robotic Process Automation, Augmented/Virtual Reality, Internet of Things, Big Data Analytics, Additive Manufacturing/ 3D Printing, Cloud Computing, Social & Mobile, Cyber Security and Blockchain.

STPI registered units in Vishakhapatnam, Andhra Pradesh have contributed ₹ 775.82 Cr for the FY 2021-22 in IT/ ITeS exports.

This information was given by the Minister of State for Electronics and Information Technology, Shri Rajeev Chandrasekhar in a written reply to a question in Rajya Sabha

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