India’s Software services exports from STP grow 9% in 2015-16
The Dollar Business Bureau
India’s IT software services exports from units under the Software Technology Parks (STP) scheme of the government is projected to have witnessed a growth of around 9% to Rs.3.19 lakh crore in the last fiscal.
According to a government data, exports of IT software services from the STP units have steadily grown over the last three years. The exports were Rs.2.73 lakh crore in FY 2013-14 and reached Rs.2.93 lakh crore in FY 2014-15. These were further grown to around Rs.3.19 lakh crore in FY 2015-16.
India’s overall IT/IT-enabled services (ITeS) exports are estimated at $108 billion in the fiscal of 2015-16.
The government provides various incentives to the IT sector. These steps have been the main contributory factors for the IT sector to flourish in the country and placed India at a leading place in the offshore services worldwide.
The main purpose of the initiatives is to promote micro, small and medium enterprises (MSMEs) by creating conducive atmosphere for entrepreneurship in the areas of IT and ITeS.
Under the STP scheme, IT-ITeS units are entitled for several benefits such as exemption of customs duty on imported goods, refund of central sales tax (CST) and exemptions in excise duty on procuring indigenously manufactured items.
This scheme is managed by Software Technology Parks of India (STPI), an independent society under the Electronics and IT Ministry.
Till now, the Commerce Ministry has notified 204 specific Special Economic Zones (SEZs) for IT-ITeS. Presently, the SEZ units are entitled for tax benefits according to the sections 10AA under the Income Tax Act for a 15-year period in a phased manner.