Government unveils new national policy on software products
Summary
Thimmaya Poojary In a big boost to the domestic software products industry, which has a significant presence of technology startups, the Union Cabinet has approved the National Policy on Software Products, which envisages the creation of a separate Rs 5,000 crore fund and support for creation of Intellectual Property (IP). There will also be a programme to promote R&D and innovation for developing software products that are solving societal challenges. The programme, with a budget outlay of Rs 500 crore, will provide financial support to MSMEs and will have matching contribution from government and industry. The software products industry is relatively of a smaller size when compared to the IT services segment. The new policy estimates that the software products industry will grow at a compounded annual growth rate (CAGR) of around 40 percent to touch a size of $70-80 billion with a potential to generate total employment of 3.5 million jobs by 2025.