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National Policy on Software Products – 2019

Published: 7th Mar, 2019

The National Policy on Software Products (NPSP) – 2019 has been approved by the Union Cabinet to develop India as a Software Product Nation.


The National Policy on Software Products (NPSP) – 2019 has been approved by the Union Cabinet to develop India as a Software Product Nation.


  • The Indian IT Industry has predominantly been a service Industry. However, a need has been felt to move up the value chain through technology oriented products and services. Under this regard, the Government has approved the NPSP – 2019 to create a robust software product ecosystem.
  • Initially, an outlay of Rs.1500 crore is involved to implement the programmes/ schemes envisaged under this policy over the period of 7 years. Rs1500 crore is divided into Software Product Development Fund (SPDF) and Research & Innovation fund.
  • “Software Product Development Fund’ will participate in venture funds having objectives aligned to this policy and so can leverage private investments targeted to promote software product ecosystem. The SPDF will be financially managed by a professional financial institution.
  • The policy proposes to create a ?5,000-crore fund with industry participation to promote emerging technology such as Internet of Things, Artificial Intelligence, Blockchain, Big Data and robotics. Of this, government contribution will be ?1,000 crore.
  • The Policy will lead to the formulation of several schemes, initiatives, projects and measures for the development of Software products sector in the country as per the roadmap envisaged therein.

Aims of NPSP – 2019

  • To develop India as the global software product hub, driven by innovation, improved commercialization, sustainable Intellectual Property (IP), promoting technology start­ups and specialized skill sets.
  • To align with other Government initiatives such as Start-up India, Make in India and Digital India, Skill India etc so as to create Indian Software products Industry of USD ~70-80 billion with direct & indirect employment of ~3.5 million by 2025.

Five Missions of NPSP-2019:

  1. To promote the creation of a sustainable Indian software product industry, driven by intellectual property (IP), leading to a ten-fold increase in India share of the Global Software product market by 2025. The objective of the programme will be to promote IP driven software product entrepreneurship. The programme with a budgetary outlay of ?500 crore will provide financial support to MSMEs and will have matching contribution from the government and the industry
  2. To nurture 10,000 technology startups in software product industry, including 1000 such technology startups in Tier-II and Tier-III towns & cities and generating direct and in-direct employment for 3.5 million people by 2025.
  3. To create a talent pool for software product industry through (i) up-skilling of 1,000,000 IT professionals, (ii) motivating 100,000 school and college students and (iii) generating 10,000 specialized professionals that can provide leadership.
  4. To build a cluster-based innovation driven ecosystem by developing 20 sectoral and strategically located software product development clusters having integrated ICT infrastructure, marketing, incubation, R&D/testbeds and mentoring support. The Policy will encourage innovation towards solving societal challenges.
  5. In order to evolve and monitor scheme & programmes for the implementation of this policy, National Software Products Mission will be set up with participation from Government, Academia and Industry.


      • Create substantive employment and entrepreneurial opportunities in emerging technologies and will boost revenues and exports in the sector.
      • Leverage opportunities available under the Digital India Programme, thus, leading to a boost in inclusive and sustainable growth.

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