Software Technology Parks of India (STPI), established in 1991 under the Ministry of Electronics and IT, has registered over 10,000 units and facilitated IT/ITeS exports exceeding ₹6.67 lakh crore in 2023-24. The scheme offers 100% foreign equity, tax incentives, and single-window clearance. Recent reforms focus on easing compliance for smaller firms, expanding STPI centres to Tier-2 and Tier-3 cities, and integrating startups under the NGIS initiative to decentralise India's IT export geography.

STPI is a statutory body under the Ministry of Electronics and Information Technology (MeitY), created under the Software Technology Parks of India Scheme, 1991. It operates as a 100% Export-Oriented Unit (EOU) scheme specifically for software exports. Units registered under STPI enjoy duty-free import of hardware and software, 100% FDI under the automatic route, and were historically eligible for Section 10A income-tax exemptions (now phased out but replaced by SEZ and other incentives).

The scheme was born from a recognition that software, unlike goods, could be 'exported' via satellite links — a novel idea in 1991. STPI provided the communication infrastructure (high-speed data links) and the regulatory umbrella in one package, making it India's first technology-specific export promotion scheme.

The Next Generation Incubation Scheme (NGIS), launched under STPI, supports hardware and software startups in Tier-2/3 cities, directly connecting to the government's goal of technology-led regional development. STPI currently operates from over 60 centres across India.

For the exam, the critical connection is between STPI, India's IT export growth story, and the broader policy framework of EOU/SEZ/STPI triad. The examiner frequently tests which ministry governs STPI, what the scheme offers (vs. what SEZs offer), and India's IT export milestones. The 1991 founding year is also a classic blank-out target — it coincides with liberalisation, making it a historically loaded date.