IT software export industry is getting bigger with 9% growth this year

software export industry is getting bigger with 9% growth this year
Exports of IT software services from units under the government's Software Technology Parks (STP) scheme is estimated to have grown by nearly 9 per cent to Rs 3.19 lakh crore in 2015-16.

Government data showed that IT software services exports from STP units have grown steadily during the last three years from Rs 2.73 lakh crore in 2013-14 to Rs 2.93 lakh crore in 2014-15, as per a news report by PTI.

This further grew to an estimated Rs 3.19 lakh crore in 2015-16.

The total IT/ITeS export of the country is estimated at $108 billion during the financial year 2015-16.

The government extends several incentives for the IT sector. These measures have been major contributory factors for the sector to flourish in India and placed the country at a dominant position in offshore services in the world.

The aim also is to promote micro, small and medium businesses by creating conducive environment for entrepreneurship in the field of IT and IT-enabled services (ITeS).

STP scheme is one of them under which IT-ITeS units are eligible for various benefits like customs duty exemption on imported goods, reimbursement of Central Sales Tax (CST) and Excise Duty exemptions on procurement of indigenously manufactured goods.

The scheme is administered by the Software Technology Parks of India (STPI), an autonomous society under the Ministry of Electronics and IT.

The Ministry of Commerce and Industry has so far notified 204 IT-ITeS specific Special Economic Zones (SEZs). Currently, the SEZ units are eligible for tax benefits as per sections 10AA of the Income Tax Act for a period of 15 years in a phased manner.