DIPP to Grant Industrial Licenses for Defence Manufacturing

The Department of Industrial Policy and Promotion (DIPP) has been given back the power to grant licenses for defence manufacturing. Earlier, a few months back, the Home Ministry was given the responsibility.
The decision was taken considering the workload of Home Ministry which has to look after security concerns of the entire country.
The decision will clear the confusions in the minds of the defence products manufacturing companies as the battle on the matter between the DIPP and the Home Ministry had virtually stopped the process of granting industrial licenses since last year.

Salient Highlights

The power to grant manufacturing licence with respect to the category of arms and ammunition and defence items under the Arms Act has been delegated to Secretary, DIPP from the Ministry of Home Affairs.
Henceforth, the defence products manufacturing companies are required to apply for industrial licenses to the DIPP as they used to do before transferring of such power to the Home Ministry.


DIPP (Department of Industrial Policy and Promotion) was first established in 1995, and then reconstituted in 2000 and merged with the Department of Industrial Development. The Department falls under the Ministry of Commerce and Industry. DIPP looks at the overall industrial policy while individual ministries work on the specific areas allocated to them. Its main responsibility includes formulation of promotional and developmental measures to boost industrial sector.



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