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Sarat Chandra IAS Academy

UPSC Civils Daily Mains Question 20th April 2020

The Government of India has approved the National Policy on Software Products 2019 to create a robust software product ecosystem in India. Discuss the objectives of the policy. What is the significance of the national software products policy? 


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. The National Policy on Software Products – 2019 helps to develop India as a Software Product Nation and a global leader in conception, design, development and production of intellectual capital driven Software Products, thus, accelerating growth of the entire spectrum of IT Industry of the country.

Objectives of National Policy on Software Products:

  • To Design appropriate strategy for development of the software product industry to ensure optimum utilization of its potential and to establish India as a global Software Product Hub.
  • To Recommend specific policy measures to ensure an enabling ecosystem for design, development, innovation, value addition, (take other words from Vision), based on use of ICT.
  • To recommend specific initiatives to be undertaken to tap the full potential of the domestic and the international markets for the Software product industry.
  • Monitor and collate various initiatives taken under this policy with an aim to create 3.5 million employment opportunities and boost software products revenue tenfold by 2025.
  • Facilitate various Government agencies and other bodies in promotion of Software Products, specific to the various programmes envisaged under this policy.
  • Encourage States to participate in programmes and promote Indian Software Products in line with this policy.
  • To Monitor Software Product Development Fund, Research & Innovation Fund.

Significance of the national software products policy 

  • It helps in Promoting Software Products Business Ecosystem
  • It promotes creation of a sustainable Indian software product industry
  • It enhances design and development of software products with industry participation.
  • It Improves Access to Domestic Market and Cross Border Trade Promotion
  • It helps in Promoting preferential inclusion of Indian software product in Government procurement
  • It Creates substantive employment and entrepreneurial opportunities in emerging technologies and will boost revenues and exports in the sector.
  • It helps to Leverage opportunities available under the Digital India Programme, thus, leading to a boost in inclusive and sustainable growth.
  • The Indian IT Industry has predominantly been a service Industry. Its software product ecosystem is characterized by innovations, Intellectual Property (IP) creation and large value addition increase in productivity.
  • It has the potential to significantly boost revenues and exports in the sector.
  • There is tremendous scope for Indian Software Products to build upon the strength of Indian IT industry (services led industry), and the innovative & technological capabilities in the country.
  • The development of the software product industry will, in return, result in positive externalities for the entire spectrum of the Indian IT/ITeS sector.

As India is a net importer of software products, there is a need for effective and efficient implementation of the policies by the government and also by the stakeholders to promote indigenous Innovation and strengthen employment in India.

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