India has many reasons to feel proud about the success of its Software Industry. During the post liberalization era, Govt. policies have acted as a catalyst and facilitated the growth of IT exports. The software Industry has attained global recognition primarily because of the timing of the policies and simplistic procedures laid-down by the Govt. when they were needed. The Industry also has responded very well to the changes in the policy. The right partnership between the Govt. & Industry has facilitated this success. Establishment of the Software Technology Park Scheme in 1991 has been a step in the right direction, at the right time.