National Policy on Software Products 2019

Recently the Union Cabinet has approved the National Policy on Software Products (NPSP) – 2019 to develop India as a Software Product Nation.

Aim of this program

• The Government has approved the NPSP-2019 to create a robust software product ecosystem, which aims to develop India as the global software product hub.

• Further, the Policy aims to align with other Government initiatives such as Start-up India, Make in India and Digital India, Skill India etc so as to help the industry grow at Compound Annual Growth Rate (CAGR) of 40% to reach $70-80 billion by 2025, while creating employment opportunities for 3.5 million people.

Key features

• The Policy will lead to the formulation of several schemes, initiatives, projects and measures to achieve the vision of NPSP-2019.

• The policy has the following five missions:

• To promote the creation of a sustainable Indian software product industry, driven by intellectual property (IP), leading to a ten-fold increase in India share of the Global Software product market by 2025.

• To nurture 10,000 technology startups in software product industry, including 1000 such technology startups in Tier-II and Tier-III towns & cities and generating direct and in-direct employment for 3.5 million people by 2025.

• To create a talent pool for software product industry through (i) up-skilling of 1,000,000 IT professionals, (ii) motivating 100,000 school and college students and (iii) generating 10,000 specialized professionals that can provide leadership.

• To build a cluster-based innovation driven ecosystem by developing 20 sectoral and strategically located software product development clusters having integrated ICT infrastructure, marketing, incubation, R&D/testbeds and mentoring support.

• In order to evolve and monitor scheme and programmes for the implementation of this policy, National Software Products Mission will be set up with participation from Government, Academia and Industry.

• An outlay of Rs.1500 crore is involved to implement the programmes/ schemes envisaged under this policy over the period of 7 years.

• The amount is divided into Software Product Development Fund (SPDF) and Research & Innovation fund.


Mains Paper 3: Economy | Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth

Prelims level: National Policy on Software Products – 2019

Mains level: Software industries in India

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