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India is embarking on a transformative journey to strengthen its digital economy and IT sector with a range of strategic initiatives aimed at boosting growth and innovation. The government has introduced several measures to promote the Information Technology (IT) and IT-enabled Services (ITeS) industry across the nation, demonstrating a robust commitment to digital advancement.
One of the key initiatives includes the establishment of 65 Software Technology Parks of India (STPIs), which are set to enhance the country’s IT infrastructure. This move is complemented by policies encouraging full foreign direct investment (FDI) in the sector, aimed at attracting global investment and expertise. Additionally, various BPO Promotion Schemes are being rolled out to foster the growth of IT and ITeS services in smaller towns and cities.
The National Policy on Software Products (NPSP 2019) outlines a clear roadmap for developing and supporting software products, while the National Institute of Electronics & Information Technology (NIELIT) is actively involved in skill development through its 52 centres across the country. Initiatives such as Future Skills PRIME focus on reskilling and upskilling IT professionals, further supporting the sector’s growth.
Moreover, programmes like SAMRIDH and GENESIS are designed to promote the startup ecosystem by providing resources and support for innovation and development.
According to the National Association of Software and Services Companies (NASSCOM), India’s technology industry is poised for impressive growth, with revenue expected to reach US$ 254 billion for FY2023-24. This forecast reflects the increasing demand for advanced software solutions and the ongoing digital transformation across various industries.
In a major push for enhancing digital infrastructure, the BharatNet project aims to provide comprehensive broadband connectivity to all Gram Panchayats (GPs) and villages across India. As of June 2024, the Amended BharatNet Programme (ABP) has successfully made 213,398 GPs service-ready.
This initiative is creating a national asset that service providers can access to deliver broadband services such as Wi-Fi hotspots, Fibre-to-the-Home (FTTH) connections, and leased lines. The widespread connectivity provided by BharatNet is expected to bridge the digital divide and bring significant improvements in internet access at the grassroots level.
On the semiconductor front, India is focusing on bolstering its domestic manufacturing capabilities to support the country’s digital ambitions. The Semicon India programme, with a total outlay of ₹76,000 crore (US$ 9.14 billion), is designed to advance the semiconductor and display manufacturing ecosystem.
This initiative includes several schemes offering financial incentives for setting up semiconductor fabs, display fabs, and facilities for compound semiconductors. The Design Linked Incentive (DLI) Scheme provides additional support for product design and deployment, aiming to drive innovation in the semiconductor sector.
The government is also implementing the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), which offers a financial incentive of 25% on capital expenditure for various electronic components and manufacturing processes. As of June 2024, this scheme has led to significant investments and production in the sector.
The Production Linked Incentive (PLI) Scheme for Large Scale Electronics aims to boost domestic manufacturing and attract investment in the value chain of mobile phones and electronics components by offering incentives for incremental sales.
Talent development is another crucial focus area. The Chips to Startup (C2S) Programme is being rolled out across 113 academic institutions, R&D organisations, startups, and MSMEs to train engineers in VLSI and embedded system design. Additionally, the All India Council for Technical Education (AICTE) has introduced new curriculums in semiconductor-related fields to create a skilled workforce for the industry.
These comprehensive efforts underscore India’s commitment to advancing its digital economy, ensuring both rapid technological adoption and robust infrastructure to sustain long-term growth and innovation.
