Emergence of India as a Software Product Nation

  • by MSH Admin
  • Sep 05, 2019

As we race into the 4th Industrial Revolution, India needs to build on this tech vision and become a global leader in both consumption and creation in the digital economy. The twin tenants of consumption and creation will power innovation and inclusion in India’s fast growing digital economy and enable India to create technological and digital transformational solutions for India and the world.

The key building blocks of the digital economy are data, talent, innovation, market and the right regulatory framework that balances innovation, growth, security and inclusion. India will need to enhance the industry-government-academia partnerships to build the right frameworks for the future as exponential technology shifts take place.

The IT sector in India is now about 3 decades in existence and continues to reinvent itself to be relevant for its stakeholders. The initial advantage was cost, which then moved to quality, to efficiency and is now aimed at becoming digital transformation partner for businesses globally and in India. At the same time, there is tremendous value creation taking place in the key markets where India operates.

In recent years, the Indian IT Industry has shown signs of moving up the value chain with the mushrooming of a number of young entrepreneurs focusing on software products and trying to exploit the possibilities that have risen due to emergence of cloud infrastructure, alternate delivery models including off the shelf and SaaS (cloud) based Software Products and mobile based delivery models using social media platforms. This is further complimented by fast evolving usage of Big Data and Internet of Things (IoT) ecosystem resulting in the convergence of hardware with software. Though capabilities exist in the IT services sector however there is a need of software products, specific to Indian needs to reduce time frame for implementation of IT projects, which of today are largely dependent on bespoke developments. To realise this growth potential in the next 10 years, industry stakeholders including Government need to act together in an unprecedented manner.

Globally the software product industry is estimated to be at US$ 413 billion and is expected to reach around US$1.0 trillion by 2025. However, in India the software product industry is still in its infancy stage. The total revenue of software product industry in India is $ 8.2 billion, out of which US$ 2.7 billion is from exports.

In order to make the Indian IT Industry move up the value chain and thereby sustain its growth trajectory, India has adopted a paradigm shift in its strategy for software sector by focusing towards creation of a vibrant Indian software product industry, where along with IT Services, IT Products would also contribute equitably and significantly..

National Policy on Software Products-2019 (NPSP-2019) synergizes the efforts of the Government and industry to create a robust software product industry which becomes the germinating ground for a large number of software product startups, promotes development of an ecosystem encouraging R&D and innovation, opens up multitude of opportunities with access to capital and helps build and improve the domestic demand.

The objectives of the Policy are as follows:

  1. To promote creation of a sustainable software product industry leveraging India’s strength in IT so as to create disruptive innovations and cutting edge technologies.

  2. To strive for a tenfold increase in share of the global software product market by 2025 by promoting easy access to local domestic/international market for software products.

  3. To build domestic market and leverage the software products to increase productivity of Indian SMEs thus raising their competitiveness.

  4. To create a software product ecosystem for transforming social sectors like healthcare, education, agriculture, rural and urban infrastructure.

  5. To create conducive environment for nurturing 10,000 technology startups to develop globally competitive software products thereby generating a direct and indirect employment for 3.5 million persons. 1000 of these technology startups shall be targeted to be set up in tier-II and tier-III town & cities.

  6. To support the software product industry by way of ease of doing business; enhanced market access and improved R&D and innovation ecosystem.

  7. To create a specialized talent pool of 100,000 professionals by 2025 conversant with nuances of software product development that can support the growth of software product industry.

  8. To build ‘absorptive capacity’ in domestic market (including Government, Public sector and MSMEs) and develop linkages with other sectors including core & social infrastructure and service sector.

  9. To setup 20 software product development clusters for providing inclusive ecosystem including ICT infrastructure, marketing and testing facilities and in line with the requirement of software product industry thereby integrating with other industry sectors.

  10. I am confident that MeitY Start-up Hub (MSH) may play a lead role to strengthen the Government’s vision of developing India as a Software Products Nation. The National Policy on Software Products has tremendous potential to support and accelerate Indian Tech-Startups to create a USD 80 Billion Software Product Industry by 2025.

I believe that joint efforts of government, industry and academia may provide the ideal platform to engage in terms of realising such vision.

We look forward to your valuable inputs/suggestions/ideas that can further stimulate this vision.


Dr. Sanjeev Kumar Gupta

Scientist-‘D’/Joint Director

Ministry of Electronics and Information Technology (MeitY)

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