The Indian government has issued a draft of the country’s first ever national policy. It is hoped that the policy will be able to streamline and boost the Indian software industry and enable rapid growth over the next decade. The government expects this policy to boost the market share of Indian software products in global market by 10 fold to an estimated $148 billion
We will know more about the policy with time, however the draft is very progressive. Along with framework that will allow for inclusion of Indian software products in government procurement, the draft also lays stress upon use of home-made products in strategic sectors like Defense, Atomic Energy, Space, Railways, Telecommunication, power and health-care.
The global software product industry is at somewhere around $411 billion globally. It is still growing and according to estimates, will reach $1 trillion by 2025. This is as opposed to software products in India, which stands at merely $6.1 billion — $2 billion of which is from exports.
Globally, the Indian software product industry accounts for 1.48 per cent of global market — which, considering the width of of IT service and service providers in the nation is a pretty bad showing. As per some estimates, the IT Industry in the country is around $143 billion and is expected to grow to $350 billion by 2025.
The draft attempts to change this by creating new jobs and propelling the creation of startups:
The policy targets to achieve a goal of creation of 1,000,000 jobs by 2017, and additional 2,500,000 by 2025.
The policy will attempt to propel a tenfold increase in India’s share in the global software product market by 2025. It aims to do this through various means including easing access to domestic as well as international market for software products.
The draft also wants to create an environment that will let startups that have software at the center of their company or as their main product, grow quickly.
It is also the government’s intent to create as many as 10,000 new tech startup. The government hopes that these startups will ultimately drive India’s growth on the global platform by developing software products that conform to international benchmarks and are accepted everywhere. The government hopes that this will led to the generation of direct and in-direct employment for as many as 3.5 million people.
Predictably, this would lead to a jump in country’s software ecosystem. The government also wants to promote “Made In India” software internationally. The international software market is booming and the government wants Indian companies to have a piece of the pie as well.