DPIIT to relax Compliance Burden of Companies

The department for Promotion of Industry and Internal Trade (DPIIT) has highlighted that, the government is planning to ease and scrap the thousands of compliance burdens for the companies. It will be done in two phases by August 15, 2021.


In a webinar organised in the first week of March 2021, Prime Minister Modi had promised the industry leaders to reduce the India Inc’s burden by scraping the 6000 compliance requirements.


The scrapping of the compliance burden is the part of government’s efforts to improve ease of doing business and ease of living in the light of Covid-19 pandemic. In order to achieve this, DPIIT is focussing on four issues namely;

  1. To relax the compliance burden
  2. To remove the archaic laws
  3. To decriminalising several civil offences and
  4. To simplify citizen-government interface.

DPIIT has also announced to launch a regulatory compliance portal which will act as the bridge between citizens, industries and government so as to reduce the compliances.

About the compliance

The DPIIT assessment highlights that, around 4000 compliance requirements are in the states’ domain and while some 2000 compliance requirements are in centre’s domain. Under the first phase of the initiative those compliance needs would be taken up for which the abolition would not require any amendment in the laws or scrapped laws. First phase will be completed by March 31. While in the second phase, those compliance requirements would be taken up for which legislative changes are required to scrap them. This phase will be completed by August 15.

Department for Promotion of Industry and Internal Trade (DPIIT)

It is a central government department works under the aegis of Ministry of Commerce and Industry. DPIIT is responsible to formulate & implement the promotional & developmental measures for the growth of industrial sector.  The department look after the overall industrial policy while several individual administrative ministries are responsible for production, distribution, development and planning of specific industries. DPIIT was named in its current form on January 27, 2019 by changing the name of “Department of Industrial Policy & Promotion”.




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