SOFTWARE TECHNOLOGY PARKS OF INDIA: OBJECTIVES & FUNCTIONS

Software Technology Parks of India (STIP) to boost the IT sector by promoting growth in tier-two and tier-three cities. Established in 1991, STPI offers software certifications, infrastructure, tax breaks, and fast internet connections. Its new approach, "STPI 2.0," focuses on entrepreneurship in software, tech products, and business process management. For UPSC Paper lll

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Picture Courtesy:   THE HINDU  

Context: 

Software Technology Parks of India (STIP) to expand the IT sector nationwide by promoting growth in tier-two and tier-three cities.

What is Software Technology Parks of India (STIP)?

The Ministry of Electronics and Information Technology (MeitY) set up STPI in 1991 to boost the tech sector. 

Initially, STPI helped tech companies by offering software certifications to increase export, infrastructure, tax breaks, single window clearance system and fast internet connections. 

What is STPI 2.0"?

STPI is now changing its main goal to ensure that tech growth reaches everyone, not just those living in major cities like Bengaluru or Mumbai. This new approach is called "STPI 2.0", aim is to create new entrepreneurship in software, tech products, and business process management (BPM) all over the country.  

It will provide special workplaces, set up facilities, offer tech skills programs, and mentorship to expand in smaller cities. 

What Schemes Does STPI Implement to Support Industry?

  • Software Technology Park (STP) Scheme => Allows a software company to set up a unit anywhere in India. There are no restrictions on location.
    • It is a 100% export-oriented scheme for the development and export of computer software, including export of professional services using communication links or physical media. 
    • Example: A small software company in a Tier 2 city can register under the STP scheme and get all the benefits without needing to be in a designated "tech park."
  • Electronics Hardware Technology Park (EHTP) Scheme => For companies that want to manufacture electronic hardware equipment and other related items in India.
    • It is a 100% export-oriented scheme for the development and export of electronics hardware.
    • Example: If a company wants to build smart devices or computer components within India specifically to sell them to other countries, the EHTP scheme provides the framework and benefits for them to do so.

How Successful Has STPI Been in Promoting Exports and Growth?

  • In the fiscal year 2024–25, companies registered with STPI achieved software exports worth over ₹10.59 lakh crore, more than half of India's total software exports.
  • More than 5,000 units (companies) are currently registered with STPI.
  • STPI now has 67 centers; 59 of these are located in Tier 2 and Tier 3 cities.
  • STPI has created about 1.7 million square feet of incubation space in Tier 2 and 3 cities.
  • STPI created 24 Centers of Entrepreneurship to promote startup culture.

FAQ

Q. What services does STPI provide to IT startups?

STPI offers incubation space, high-speed data, tax incentives, single-window clearance, and access to Centres of Excellence in technologies like AI, IoT, and blockchain.  

Q. How does STPI support startups in smaller cities?

STPI offers incubation facilities, tech skills, mentoring, funding, and infrastructure like high-speed internet in 59 tier-2/3 centers.

Q. What is STPI’s impact on India’s software exports?

STPI units achieved ₹10.59 lakh crore in software exports in 2024-25, over half of India’s total software exports.

Source: THE HINDU 

PRACTICE QUESTION

Q. "Digital inclusion is not an end in itself, but a means to achieve broader sustainable development goals." Critically analyze. 150 words

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