- Why in news
- On 12 August 2026, the Electronics and IT Minister told the Lok Sabha that STP units exported an estimated ₹7.73 lakh crore in FY 2025-26. The ministry also listed steps taken to ease approvals for these units.
- What it is
- The Software Technology Parks (STP) Scheme is a 100% export-oriented scheme for software and IT/ITeS exports. It is run by Software Technology Parks of India (STPI), under the Ministry of Electronics and IT. STPI gives statutory services to registered units through a single-window clearance system.
- Nature of scheme
- STP is a 100% export-oriented scheme to promote software and IT/ITeS exports from India.
- Who runs it
- STPI provides statutory services under the scheme through a single-window clearance system. STPI works under the Ministry of Electronics and IT.
- Import procedure change
- Case-to-case import permissions were replaced by blanket import permissions for the financial year.
- DTA sales
- Prior DTA permission is replaced by self-declaration, except for advance DTA sales in a unit's first year.
- RBI link
- STPI's online system for IT exporters is integrated with RBI's EDPMS, so export declaration data reaches RBI in near real time.
Don’t confuse with STP vs SEZ: STP is a scheme for 100% export-oriented IT/ITeS units run by STPI. SEZs are duty-free enclaves treated as foreign territory for trade, governed by the SEZ Act, 2005.
Don’t confuse with STP vs EOU: STP units are a separate scheme for software and IT services, run by STPI. EOUs are a broader export-oriented scheme covering other sectors.
Schemes: 52 Prelims questions since 2013, 10 in Prelims 2026 alone. They test features, the period and who funds it. In Mains, 33 news-triggered questions, mostly GS3.
Why it matters
- Supports IT/ITeS exports, a major source of foreign exchange and services-export strength.
- Single-window clearance and automation lower compliance costs for exporters.
Problems
- Unit numbers are flat (about 2,000 over three years) and investment reported is falling, so growth comes from existing units.
- Exports are concentrated in a few states, mainly Karnataka, Telangana, Maharashtra and Tamil Nadu, leaving smaller states behind.
Way forward
- Extend the units and ease of doing business benefits to Tier-2/3 cities and under-represented states.
- Keep integrating systems such as EDPMS to cut manual steps and improve monitoring.
Put in your answer
Ease of doing business steps: Automation of SOFTEX filing and approval, blanket import permissions and self-declaration for DTA sales are examples of reforms.
- 2015Mains GS3 · Q10Issues plaguing SEZs' success regarding taxation, governing laws and administration
- 2017Mains GS1 · Q20Substantiate how growth of cities as IT hubs created employment and new problems
- 2021Mains GS1 · Q17Socio-economic implications of IT industry development in major Indian cities
- 2004Prelims Q20Largest IT software and services exporter in India during 2002-03
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
No practice question for this one; the card may still help an answer. Why: Lasting export-oriented scheme run by STPI, but mostly tabulated data; UPSC rarely asks it (schemes 52 of 327 Prelims questions, fresh-news driven).
Worth revising until Prelims 2028: most news questions come within two years of the event.