The (Union) Budget speech has made a path-breaking announcement. It says that the government will have a "special focus" on software products start-ups. Every industry has both services players and product players. We know how to build services companies. Now, we must create product Industries.
Product imports are growing faster than services exports, which will be further exacerbated when the economy picks up. Electronics imports will overtake oil imports in a few years. Software products could be the opening batsman for the products innings that we must now play. New software products companies are reaching Biocon-sized valuations every year and the industry forms the core of defence, aerospace and electronics industries.
With the new policy impetus, software product companies which comprised 3 million small businesses would now grow to include 30 million small enterprises. In recent years, hundreds of technically-qualified people have joined software product start-ups. About 15-20 per cent of new engineering graduates from marquee colleges now elect to join the ecosystem. Besides making small businesses competitive, software products can make schools moe effective, raise health care centres' productivity and even arm farmers with new skills.
CEO & founder, Inmobi