Department for Promotion of Industry and Internal Trade (DPIIT)

The Department for Promotion of Industry and Internal Trade (DPIIT) is a central government department under the Ministry of Commerce and Industry, Government of India. It was established in the year 1995 and was earlier known as the Department of Industrial Policy & Promotion (DIPP). The department was renamed as DPIIT in January 2019.

Vision and Mission

The vision of DPIIT is to promote industrial growth and development in India, while its mission is to create a conducive environment for investment, innovation, and entrepreneurship. The department aims to achieve this by formulating and implementing policies and programmes that facilitate ease of doing business, attract foreign direct investment (FDI), and promote startups and intellectual property rights (IPR).

Functions and Responsibilities

DPIIT is responsible for various functions related to industrial policy, investment promotion, and internal trade. Some of its key responsibilities include:

  • Formulation and implementation of industrial policy
  • Facilitating ease of doing business in India
  • Promotion of FDI and overseas direct investment (ODI)
  • Administration of various laws and regulations related to industries and internal trade
  • Promotion of startups and innovation
  • Protection and promotion of IPR
  • Coordination with state governments and other stakeholders for industrial development
  • Promotion of e-commerce and digital economy

Initiatives and Schemes

DPIIT has launched various initiatives and schemes to promote industrial growth and development in India. Some of the key initiatives include:

  • Make in India: A flagship initiative to promote manufacturing and attract FDI in India
  • Startup India: An initiative to promote startups and entrepreneurship in India
  • Invest India: A national investment promotion and facilitation agency to attract and facilitate FDI in India
  • National Intellectual Property Rights Policy: A comprehensive policy framework to promote and protect IPR in India
  • Industrial Corridors: Development of industrial corridors to promote industrial clusters and connectivity
  • National Manufacturing Policy: A policy framework to increase the share of manufacturing in India’s GDP
  • Public Procurement (Preference to Make in India) Order: An order to promote domestic manufacturing and procurement by government agencies

FDI Policy

DPIIT is responsible for formulating and implementing India’s FDI policy. The department has liberalised the FDI policy over the years to attract more foreign investment in various sectors. Currently, India allows 100% FDI under the automatic route in most sectors, except for a few sectors where FDI is prohibited or restricted.

In the recent past, DPIIT has introduced several reforms in the FDI policy, such as relaxing norms for single-brand retail trading, contract manufacturing, and coal mining. The department also monitors FDI inflows and outflows and maintains a database of FDI statistics.

Ease of Doing Business

DPIIT is the nodal department for improving India’s ranking in the World Bank’s Ease of Doing Business (EoDB) index. The department has taken various measures to simplify and streamline regulatory processes, such as introducing a single-window clearance system, reducing the number of documents required for imports and exports, and implementing online systems for various approvals and clearances.

As a result of these efforts, India’s rank in the EoDB index has improved significantly from 142 in 2014 to 63 in 2020. The department aims to further improve India’s ranking by implementing more reforms and best practices.

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