Software Technology Parks of India

Software Technology Parks of India (STPI) is a society established in 1991 by the Indian Ministry of Communications and Information Technology with the objective of encouraging, promoting and boosting the export of software from India.


STPI maintains internal engineering resources to provide consulting, training and implementation services. Services cover network design, system integration, installation, operations and maintenance of application networks and facilities in varied areas. It is an export oriented scheme for the development and export of computer software, including export of professional services. The STP Scheme provides various benefits to the registered units, including 100% foreign equity, tax incentives, duty-free import, duty-free indigenous procurement, CST reimbursement, DTA entitlement, and deemed exporting.

STPI has played a seminal role in India having earned a reputation as an information technology superpower. STP units exported software and information technology worth Rs. 215264 crore in FY 2010-11.[1] The state with the largest export contribution was Karnataka followed by Maharashtra, Tamil Nadu and Telangana. STPI has a presence in many of the major cities of India including the cities of Bangalore, Chennai, Hyderabad, Kanpur, Kolkata, Mumbai, Nagpur, Lucknow, Pune and Surat.[2] [3][4]

Besides regulating the STP scheme, STPI centers also provide a variety of services including high-speed data communication, incubation facilities, consultancy, network monitoring, data centers and data hosting. STPI provides physical hosting for the National Internet Exchange of India.

The tax benefits under the Income Tax Act Section 10A applicable to STP units has expired since March 2011. While the Government has chosen not to extend the Sec 10A benefits against the demand by the IT units, most of the STP registered SME units shall be affected, who now will have to pay Income Tax on profits earned from exports.

A new incentive scheme for IT & ITES companies is under discussion. It will help dispersal of IT industry in smaller cities and also support STPI-registered units which have not come under SEZs as well as other units which are not covered under any incentive scheme. This incentive scheme is seen as an alternate scheme to compensate the STPI units, but the same would be restricted to those units located in tier II and III cities. However, proposal is still under consideration and no announcement has been made.

Performance of STPI Registered Units

During the year 2014-15, 106 new units were registered under STP Scheme. As of 31 March 2015, 3124 units were operative out of which 2832 units were actually exporting.

Exports by STPI Registered IT/ITeS Units

The overall exports done by STPI registered IT/ITeS units increased from 2,73,313 Crore in 2013-14 to 2,93,797 Crore in 2014-15, an increase of 7.49%. The bifurcation of 2014-15 exports is as follows:

State wise Software Exports made by registered units through STPI

Name of the State 2007-08 2008-09 2009-10 2010-11 2014-15[1]
Andhra Pradesh 379.54
Assam 0.60 1.35
Chandigarh 519.89
Chattishgarh 0.22 89.23 4.50 4.58 18.63
Delhi 5,264.00 1,762.00 1,892.49 1,776.90 2217.85
Gujarat 681.00 1,268.13 1,035.00 1,250.99 1917.96
Haryana 10,960.00 12,410.00 14,795.36 13,650.75 17857.69
Himachal Pradesh 1.10 0.75 1.69 1.90 8.35
Jammu Kashmir 1.28 1.74 1.25 1.80 2.45
Jharkhand 7.00
Karnataka 70,240.93 1,09,797.67
Kerala 1,201.00 1,803.00 1,956.45 2,071.67 2867.77
Madhya Pradesh 185.22 198.00 214.93 246.89 343.38
Maharashtra 35,374.00 42,360.88 45,709.34 49,873.78 61314.29
Meghalaya 1.64 4.21
Orissa 844.00 1,162.00 1,116.83 1,253.29 1940.00
Pondicherry 64.00 65897.65 110.25 153.26
Punjab 227.56 230.00 345.38 438.43 336.34
Rajasthan 275.30 358.00 520.36 491.65 712.27
Tamil Nadu 38,295.00 38,355.58 41,363.51 42,100.00 75,000 [5]
Telangana 26,122.00 31,039.00 27,665.85 28,674.57 39,185.84
Uttar Pradesh 10,695.21 10,264.36 10,590.43 10,281.60 13,740.34
Uttarakhand 9.31 21.00 174.16 86.19 74.67
West Bengal 4,500.00 5,129.00 5,441.00 5,665.00 7015.00
All India 228,646.81 293796.50

All figures in Crores of INR

Exports by EHTP Units

The exports made by EHTP units decreased by 26.35% from 27091.54 Crore in 2013-14 to 19951.81 Crore in 2014-15.


External links

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