Empowering Economies with ICT, Innovation and Entrepreneurship

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1 2 nd Global Forum on Business Incubation Empowering Economies with ICT, Innovation and Entrepreneurship Software Technology Parks of India Department of Information Technology Ministry of Communications and Information Technology Government of India

2 STPI- A brief introduction An Autonomous Organization set up by Department of Information Technology (DIT), Ministry of Communications and Information Technology (MCIT), Government of India in Mandate to promote export of IT Software & IT Services from the nation by providing conducive environment, policy support and Infrastructure facilities. Acting as a ONE STOP SHOP for needs of software exporters.

3 Nationwide Presence 47 centers throughout the country Noida Allahabad Bhillai Dehradun Indore Jaipur Kanpur Lucknow Mohali Srinagar Shimla Jammu Jodhpur Bangalore Hubli Mangalore Manipal Mysore Hyderabad Vijaywada Vizag Warangal Tirupati STPI centers Srinagar Navi Mumbai Jammu Guwahati Imphal Mohali Gangtok Shimla Thiruvananthapuram Dehradun Gandhinagar STPI-HQ New Delhi Gangtok Guwahati Kolkata Lucknow Noida Durgapur Kanpur Allahabad Imphal Jodhpur Kharagpur Jaipur Siliguri Ranchi Siliguri Bhubaneswar Gandhi Nagar Kolkata Kharagpur Rourkela Indore Durgapur Ranchi Nashik Bhilai Navi Mumbai Aurangabad Rourkela Chennai Pune Nagpur Coimbatore Bhubaneswar Madurai Kolhapur Wanrangal Pondicherry Vizag Tirunaveli Vijayawada Trichy Hyderabad 7 Directorates, 40 Sub Centres Hubli Manipal Pune Mangalore Thirupati Nasik Bangalore Kolhapur Nagpur Mysore Pondicherry Trichy Aurangabad Coimbatore Chennai Madurai Thiruvananthapuram Thirunelveli MAP NOT TO SCALE

4 Roles of STPI Interface between Govt. & Industry Single Window Facilitation Statutory Role 1. Policy modification 2. Collaboration with state agencies & educational institutions 1. STP Scheme: Fiscal Benefits ONE STOP SHOP Infrastructure provider Datacom Service Provider, Project Consultancy & Trainings 1. Best Broadband connectivity, 2. Incubation space to SME 3. International cooperation seminars, collaborative Projects Stimulating Demand and Regional Development Promotional Role 1.Dispersal of industry to Secondary and tertiary cities

5 Indian IT Industry - An Overview Industry Turnover ( ) US $ 36.3 billion Hardware Domestic : US $ 5 billion Hardware Exports : US $ 1.9 billion Software Exports : US $ 23.4 billion Software Domestic : US $ 6.1 billion PC penetration (March 2005) : 14 per 1,000 people PC penetration by 2010 : 45 per 1000 people Domestic IT Spend : 1.5% of GDP

6 STP Scheme and Exports by STPI Units Highlights of STP/EHTP Schemes Complete duty free imports Up to100% foreign equity permitted No corporate income tax up to March 2010 Single window Government clearance Export Certification DTA sales allowed up to 50% of exports Reimbursement of Central Sales Tax Exports Software Exports (in by Rs Crores) STP Units 28, ,051 STP Units Exports National Exports 36,500 29, , K-2K1 2K1-2K2 2K2-2K3 2k4-2k5 2k5-2k6 More than 4000 software exporting units 95% of the total national software export through STPI Total Software exports by STPI units for FY is Rs Cr.

7 India: The Emerging Global R&D Hub The R&D outsourced market expect to cross 13.2 billion by 2010 Key research areas VLSI, ASICS, RFid, Computer Architecture, Encryption Technologies, Computer graphics & multimedia, Programming Languages, Nano-technologies, opto-electronics, MEMs Patents out of India by MNCs: Current patents by Indian entity Texas Instruments Intel Oracle Cisco Systems GE IBM ICI Whirlpool SAP Source: Nasscom; Evalueserve; Naissance Capital; companies Design Engineers at Lead Companies Intel 2500 Motorola 1100 Texas Instruments 1450 Philips 2100 Sanyo 700 HP 2500 Cisco 2100 National Semi Conductor 950 IBM 2750 The Economist, April 3-9, 2004

8 Data communications Services State-of of-the-art datacom infrastructure at 47 locations with 24/7 operations Strengths in being leaders in satellite based operations and substantial adoption of fiber based circuits in the recent past Satellite Gateways & Radio Tower Working with major national and international carriers/telecom operators Self owned Last Mile Access over multiple delivery options: Microwave, Fiber, WiFi Network Operations Center

9 National and International Projects Implementation of Ebene Cyber City on a turnkey basis Ebene Cybercity, Mauritius Consultancy for setting up of IT/software parks to Ivory Coast, Myanmar, Nepal, Cyprus etc Keen interest from various countries to emulate STP model and set up IT/software parks with the help of STPI Setting up of National Internet Exchange of India (NIXI) Implemented the project for NOC (network operations center) for NIC Khajane.net (interconnectivity of treasuries ) for the Government of Karnataka and many more prestigious projects.

10 Ebene Cyber City-Mauritius 172 Acre Knowledge Park with 7 Functional Zones State of the Art Infrastructure and Innovative Telecom Network Awarded World s Most Intelligent Building-2005

11 Biotech Initiative- Setting up of Bio-IT Park Department of IT and Dept of Biotechnology have envisaged the creation of a Bio-IT Park and STPI has been entrusted as a nodal agency for this purpose. The park is being developed in the form of a Public-Private Partnership model. Integration & Knowledge Exchange TEXT TO BE ADDED International Knowledge/ Tech Collaborations Target Segment Industry Bio-IT Park Investor Community Flow of Capital Flow of Knowledge Research Institutes & Universities Government & Support Agencies Nurturing & Policy Support

12 Incubation Services- Support to start-ups and SMEs State-of-the art incubation facilities to SMEs and start-up units at minimal cost More than 500,000 sq.ft of incubation space provided by various STPI centers Incubator services Statutory Support Incubation facilities in secondary/tertiary cities have encouraged IT entrepreneurs to start operations STPI Incubation facilities are of various types- raw built up space, semi furnished, fully furnished with plug and play options / internet / datacom International cooperation and facilitation Marketing, consultancy and handholding support Incubators serve big firms that today happen to be small

13 STPI- Incubation Services Short gestation period Handholding during inception period STPI incubation phase Promotion by way of participation in conferences/exhibitions Enabling access to angel and VC Objective is to create strong ventures after initial assistance, and make way for the next batch of entrepreneurs

14 ORCHID INCUBATION-STPI Bangalore

15 STPI Incubation Program Government Support Mentoring Industry Knowhow Funding Academia Venture Capital

16 Infrastructure Plug n Play Facility Data Centre Software Library Design Tools Connectivity and Bandwidth Ultra Modern Office Infrastructure Library & General Utilities IT Support service Business Support Service HR, Legal, Finance and Admin Communication Service Support

17 Networked Incubator Government Incubator - USA Industry STPI Incubator Incubator - Ireland Academia Incubator - UK Venture Capital Incubator - Singapore

18 S N Zindal Director General Software Technology Parks of India. Phone: (91)(11) Fax : (91)(11)

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