The number of Software Technology Park (STP) units registered in Chandigarh has fallen sharply over the past two years. According to data presented by the Ministry of Electronics and Information Technology in the Lok Sabha during the ongoing Monsoon Session of Parliament, the count dropped from 20 in 2023-24 to 13 in 2024-25, and remained at 13 in 2025-26.
Chandigarh STP Unit Decline: What the Numbers Show
The decline represents a 35% reduction in the number of registered STP units in the city over the two-year period. The data, as reported by The Tribune, shows the unit count has now stabilized at 13 for the current fiscal year.
Despite the drop in the number of units, Chandigarh's STP sector continues to show resilience in its export performance. The city recorded software and IT-enabled services exports of more than Rs 400 crore annually throughout this period.
Software Exports Remain Strong Despite Fewer Units
The export figures tell a story of sustained performance even as the number of registered units declined:
- Exports stood at Rs 519.15 crore in 2023-24
- Exports declined to Rs 491.66 crore in 2024-25
- Exports fell further to an estimated Rs 414.34 crore in 2025-26
While the export numbers have shown a gradual decline, they remain well above the Rs 400 crore mark, indicating that the remaining units are still contributing significantly to the region's IT economy.
Import Trends Show Mixed Picture
The data also revealed import patterns among Chandigarh's STP units. Imports were just Rs 2 lakh in 2023-24, which then increased to Rs 1.74 crore in 2024-25, before declining again. This fluctuation in imports suggests changing operational needs among the active units in the city.
Our Take: A Sign of Consolidation, Not Collapse
To put it plainly, the drop in STP unit count from 20 to 13 in Chandigarh might look worrying at first glance, but the export data tells a more balanced story. The fact that exports remain above Rs 400 crore annually — even with fewer units — suggests the sector is consolidating rather than collapsing.
In our view, this could mean that smaller or less active units have shut down, while the remaining 13 units are more productive and export-focused. The gradual decline in exports from Rs 519 crore to Rs 414 crore does deserve attention, but the sector is still generating substantial revenue for the region.
The unchanged count of 13 units in 2025-26 could indicate that the sector has found its stable base. For policymakers, the focus should now be on supporting these existing units and understanding why the number of registrations fell — whether due to business closures, relocations, or consolidation. The data from the Ministry of Electronics and Information Technology provides a clear picture, and it will be worth watching whether the unit count stabilizes or continues to shift in the coming years.
