Date: December 21, 2021
The Software Export Boom
The industry is flourishing like never before in Karnataka with numbers touching Rs 2 lakh crore for the first time in history. Karnataka continues its domination of being the number one state in the country when it comes to software exports. Though many states are picking up the pace by establishing software parks as well as providing incentives to the IT companies, Karnataka is far ahead of them.
In fact, for the first time in history, software exports from the state (from IT companies registered with the Software Technology Parks of India has touched Rs 2-lakh-crore mark. According to Union Minister of State of Commerce and Industry Anupriya Patel’s statement in Rajya Sabha recently, Karnataka’s software exports for this financial year (2020-21) is Rs 2,04,648.96 crore. If we look at the last five years’ trend, software exports have seen a steady growth year after year. In 2016-17, the exports were Rs 1, 41,846 crore; 2017-18-Rs 1, 52,280.16 crore; 2018-19-Rs 1, 69,699.08 crore and Rs 1, 94,473.28 crore in 2019-20. As three months are remaining in the current financial year, the software exports are likely to record a new high.
An IT expert said, “Looking at the employment or revenue across the sectors, many were badly hit due to the outbreak of covid. However, if we look at the statistics, it is clear that the covid pandemic had little effect on the software exports scenarios.
As many IT companies were quick to adapt to WFH and later the hybrid model, their work was least affected.
“As many IT companies were quick to adapt to the work from home system and later the hybrid model, their work was least affected and has shown a positive trend. They continue to drive the exports in the state.”
Another IT expert said, “Bengaluru is aptly called the Silicon Valley of the East. The city has a lion’s share in the software exports though a small section of companies are operating in other cities. The figures reinforce Bengaluru’s stand as the IT capital of India.”
Interestingly, Karnataka is not just the number one state in terms of software exports, but also much ahead in the competition compared to other states. For example, Maharashtra is at a distant second when it comes to software exports as the gap between the two states is more than Rs one lakh crore. Maharashtra’s software exports are Rs 99,732.48 crore.
Much is talked about the Bengaluru versus Hyderabad competition in software exports and many times, the neighbouring state claims that it has been able to woo many big ticket companies.
However, with Bengaluru being the prime driver in Karnataka and Hyderabad in Telangana, the Telangana state is third with Rs 71,574.19 crore exports.
Software Technology Parks of India was set up in 1991 as an autonomous society under the Ministry of Electronics and Information Technology. STPI’s main objective has been the promotion of software exports from the country.
STPI acts as ‘single-window in providing services to the software exporters. The services rendered by STPI for the software exporting community have been statutory services, data communications services, incubation facilities, training and value-added services.
Currently, more than 5,000 units are registered with STPI across India. A total of 60 STPI centres/sub-centres are operational across the country, out of which, 51 centres are in Tier II and Tier III cities.
Housed in the Electronic City, a major IT cluster in Bengaluru with presence of 200-plus IT/ITeS/ electronics system design & manufacturing (ESDM) companies.
The total exports from the STP units under STPI-Bengaluru has gone from Rs 39 crore in 1993 to Rs 2.04 lakh crore in FY 2020-21.
The Bengaluru story
In 1990, Bengaluru was the first Software Technology Park (STP) of India that was set up along with STPs in Pune and Bhubaneswar, which later merged in June 1991 into a single autonomous society called Software Technology Parks of India.Featured on leading daily as mentioned below :