In a recent turn of events, the Union Cabinet gave its nod to the National Policy on Software Products (NPSP) – 2019, an ambitious plan to transform India into a global software product hub. The prime objective of this forward-looking policy is to establish a vigorous software product ecosystem in the country.
Aligning With Other Government Initiatives
The NPSP-2019 is tailored to work in harmony with several other government endeavors like Start-up India, Make in India, Digital India, and Skill India. By integrating with these initiatives, the policy aims to stimulate a Compound Annual Growth Rate (CAGR) of 40%, thereby catapulting the industry to hit $70-80 billion by 2025. Concurrently, this acceleration in growth is projected to generate employment opportunities for around 3.5 million individuals.
Key Features of the Policy
The crux of the NPSP-2019 policy rests upon the implementation of various schemes, projects, and initiatives that align with its vision. The policy is built upon five critical missions.
Firstly, it emphasises on promoting a sustainable Indian software product industry which is driven by intellectual property (IP), aspiring to amplify India’s share in the Global Software market by ten-fold come 2025.
Secondly, it targets to foster 10,000 tech startups in the software product industry, of which at least 1,000 will be based in Tier-II and Tier-III cities. This endeavor is expected to generate direct as well as indirect employment for approximately 3.5 million people by 2025.
Thirdly, the policy presents an initiative to cultivate a talent pool for the software product industry. This will be achieved by up-skilling 1,000,000 IT professionals, inspiring 100,000 school and college students and generating 10,000 specialized professionals capable of providing leadership.
Development of Software Product Clusters
An integral component of the policy is to construct a cluster-based ecosystem stimulated by innovation. The proposal entails the development of 20 sectoral software product development clusters, each strategically located and boasting integrated ICT infrastructure, marketing, incubation, R&D/testbeds, and mentoring support.
Evolution and Monitoring of Policy Implementation
In order to effectively implement, evolve, and monitor schemes under this policy, a National Software Products Mission will be established. This mission will see active participation from the Government, Academia, and Industry players.
| Fund | Outlay |
|---|---|
| Software Product Development Fund (SPDF) | Part of Rs.1500 crore |
| Research & Innovation fund | Part of Rs.1500 crore |
Financial Aspects of the Policy
A sum of Rs. 1500 crore has been allocated for implementing the various programmes and schemes foreseen under this policy over a span of seven years. This amount will be segregated between the Software Product Development Fund (SPDF) and the Research & Innovation fund.
