Commerce Minister all for the Software Technology Parks of India scheme

Let down by the recently announced budget, considering the non-extension of the Software Technology Parks of India (STPI) scheme, the IT industry today seems to find light at the end of tunnel with Commerce and Industry Minister arriving at a decision to take up the issue with finance minister Pranab Mukherjee. Sharma is also looking forward to push Mr. Mukherjee to extend tax holidays to export-oriented units and STPIs atleast by a year.

Its being long the software ‘product’ industry has been given overlooked by the government; however, the budget has provided some support in the form of exemption in terms of excise duty, customs duty and service tax for the imported packaged software, but have totally ignored the local software industry altogether. The government should be proactive enough to announce special measures for software industry, informed a local business from Ahmedabad.

Now with the commerce and industry minister lending a helping hand, the IT industry seems bullish about its future growth prospects. STPI are instrumental in propelling the growth of the IT industry, as it facilitates small and mid-sized IT firms to carry out business from a single point. It provides exposure and thereby helps reach the customers. However in case the tax incentives are withdrawn, then small players will really will find it difficult to sustain profits, which might force them to move out of STPIs.

For the uninitiated, the STPI format was to be wound up by March 31, 2011. At present, there are over 6,000 software units operating under the STPI scheme, contributing about 85-90 percent of the country’s total software exports. In 2008-09, exports from software units generated around US$47 billion for the country. Taking into account the major contribution to the Indian economy, it is crucial that software units operating under the STPI scheme, especially the SMEs are given sufficient financial support.

India over the years has established itself as an IT superpower. Software Technology Parks of India have played a prominent role in achieving this status. At present STPIs all over India are known for their infrastructure and statutory support designed to further the growth of Information Technology in the country.

Software Technology Parks of India (STPI), is a society established by the Department of Communication & Information Technology,Government Of India in 1991, with the sole purpose of supporting and furthering the Software Exports from India.

STPIs offer training, consulting, and implementation services. The slew of services it covers include: Network Design, Installation, System Integration, Operations and maintenance of application networks and facilities in varied areas ranging from VSATs to ATM based networks.