Section 3(k) of the Indian Patents Act states that "a mathematical or business method, a computer program per se or algorithms" are not considered to be inventions. However, it does not impose a blanket ban on patenting

The term "Software Patent" in India is colloquially used to address patents for computer related inventions in India, as the term "Software Patent" is not defined in any of the Indian Statutes. Instead, the Indian Statutes and Government Guidelines use terminologies like computer programme, algorithms, and computer related inventions, which in layman terms may be interpreted as a software. Copyright and patent are two Intellectual Property (IP) protections for a software product. Copyright is the most common method of protecting software program as writing source code and programs is similar to writing any type of literary or artistic work. Patent is the strongest way to protect an IP but there are many stringent criteria to be fulfilled in order to get a patent for software. Patent laws create an exception with scientific discoveries, mathematical formulae, and algorithms. Computer programs are considered as a form of applied mathematics. Thus, in India, software is not directly patented but it can be granted patent if it is attached with novel hardware, an invention which is unique and capable of industrial use. According to RBI's annual survey, export of India's software services increased by 11.6% to $108.4 billion in 2017-18. However, there is still no law that specifically and exclusively deals with software and computer programs. Software is protected under copyright, patents and at sometimes under the trade secrets. Even though we have legal provisions for IP protection, but the country fails in having a developed jurisprudence and therefore, American approach is applied majority of the times in dealing with such cases. Even the amended Information Technology Act does not talk about the IP protection of computer software and programs. Whether it helps or hinders Indian software business growth: The fast growing software industry and a faster pace of technological advancements have made it essential to protect the intellectual property (IP) vested in the software, programs and all those machines that use such programs and software. Software and computer programs face a cutthroat competition in the market and are pretty vulnerable to suffer undue economic loss as it might be accessed by users without payment and also, software are vulnerable to piracy and being copied. Further, due to fierce competition, there is a serious threat of being outdated very soon as the competitors might bring a competing product quickly. Protection of software under IPR (Intellectual Property Rights) mechanism will not just protect the economic interest of the owner but also will promote innovation and creativity. In such an advancing and growing digital era, having such limited options for protection of one's original work in the field of software and computers might lead to lack of innovation and creativeness coming forward. Hence, it is essential that all these laws which are so scattered and vaguely made, be developed and put in place for better protection of the creator's work.