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Industry experts, however, say the STPI figures don’t reflect the full picture of city-wise software exports. Some of the exports have moved away from STPIs into special economic zones (SEZ) and recorded impressive growth.
Karnataka’s IT/BT minister Priyank Kharge said a lot has changed since the Centre came up with the STPI scheme three decades ago. Many exports of services have moved into SEZ, finding the SEZ scheme more attractive, he told ET. Many small and medium-sized software exporters are not registered under the STPI, he added.
“We have policies for almost everything, and they are quite beneficial to investors. Companies are also moving up the value chain, and we have always suggested to the companies to think beyond STPIs and do something out of the box,” Kharge said. He also added the Centre must give new directions to the STPI policy, in line with the changing trends in the tech sector.
Karnataka Digital Economy Mission chairman BV Naidu said the STPI accounted for 60% of software exports from Bengaluru while 40% came from companies operating out of SEZs. “In Mysuru, Mangaluru and Hubblli, STPI exports are only less than 30% while 70% came from the units in SEZs and other smaller companies,” he said, pointing to the export trends in tier II cities. Bengaluru has retained its pole position in