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Cabinet approves National Policy on Software Products 2019

Date: 01 March 2019 Tags: Commerce & Industry, Science, Technology & Innovation

Union Cabinet has approved National Policy on Software Products–2019 (NPSP-2019) to develop India as robust software product nation. It is aligned with other Government initiatives such as Start-up India, Make in India and Digital India, Skill India etc. Its implementation will lead to formulation of several schemes, initiatives, projects and measures for development of Software products sector in the country.

National Policy on Software Products 2019

  • Objectives: Develop India as global software product hub, driven by innovation, improved commercialization, sustainable Intellectual Property (IP), promoting technology start­ups and specialized skill sets.
  • Create Indian Software Products Industry of US $70-80 billion with direct and indirect employment of 3.5 million by 2025.
  • Implementation: It lays out five-year road map seeking creation of 3.5 million jobs and promoting 10,000 startups with initial budget of Rs 1,500 crore.
  • This initial outlay is for seven years and is divided into Software Product Development Fund (SPDF) and Research & Innovation fund. It will be used to implement programmes planned under policy.

Five Missions of NPSP 2019

  • Promote creation of sustainable Indian software product industry, driven by IP. It seeks for ten-fold increase in India share of global software product market by 2025.
  • Nurture 10,000 technology startups in software product industry, including 1000 such startups in Tier-II and Tier-III towns/cities. Generate direct and in-direct employment for 3.5 million people by 2025.
  • Create talent pool for software product industry through (i) up-skilling of 1,000,000 IT professionals, (ii) motivate 100,000 school and college students and (iii) generate 10,000 specialized professionals that can provide leadership.
  • Build 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.
  • Set up National Software Products Mission to evolve and monitor scheme and programmes for implementation of this policy. It will have participation from Government, academia and Industry.


The Indian IT Industry has predominantly been a service Industry. However, a need has been felt to move up the value chain through technology oriented products and services. Software product ecosystem is characterized by innovations, IP creation and large value addition increase in productivity. It has potential to significantly boost revenues and exports in IT sector, create substantive employment and entrepreneurial opportunities in emerging technologies and leverage opportunities available under existing Government programmes such as Digital India, thus leading to boost in inclusive and sustainable growth.

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