Department of Industrial Policy and Promotion

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The name of the Department of Industrial Policy and Promotion (DIPP)has been changed to Department for Promotion of Industry and Internal Trade (DPIIT) vide Gazette Notification No. S. O. 507 (E) Dated 27th January 2019, Department of Industrial Policy & Promotion was established in the year 1995, and was reconstituted in the year 2000 with the merger of Department of Industrial Development. The department functions under the Ministry of Commerce and Industry, Government of India. It is responsible for formulation and implementation of promotional and developmental measures for growth of the industrial sector, keeping in view the national priorities and socio-economic objectives. While individual Administrative Ministries look after the production, distribution, development and planning aspects of specific industries allocated to them, DPIIT is responsible for the overall industrial policy. It is also responsible for facilitating and increasing the foreign direct investment (FDI) flows to the country.

It is currently working to frame a new industrial policy, to be the third such policy in India since its independence in 1947.

The current Minister is Suresh Prabhu while the top bureaucrat is Secretary Ramesh Abhishek.

Stimulating Investments[edit]

The department has undertaken an initiative known as India Investment Grid (IIG.)[1] in association with Invest India,[2] India's national investment and facilitation agency. IIG is an online web portal that showcases a menu of investment options across India on a single platform. The initiative not only allows investors across the globe to easily search, identify and track investment worthy projects, but also allows promoters to highlight their projects along with requirements like funds, technology and collaboration needs with global audience.


However, the Department has faced criticism for not publishing FDI figures since June, 2018, despite the Reserve Bank of India (RBI) providing it with regular inputs. Earlier, this data was published every quarter. This happens at a time the country has seen inbound FDI dropping for the first time under the Narendra Modi government, Business Standard newspaper has revealed.[3]

The DPIIT compiles total investment inflows with the data from the RBI as well as its own databases. The last time they published this data was in August last year; that was for the April-June period. Officials at the department refused to explain why the data had not been released.

Boosting growth of Startups[edit]

The Startup India initiative aims to make India a hub for startups. It aims to discard restrictive States Government policies within this domain, such as License Raj, Land Permissions, Foreign Investment Proposals, and Environmental Clearances.

The focussed areas include - Reduction in patent registration fees. Freedom from mystifying inspections for first 3 years of operation. Freedom from Capital Gain Tax for first 3 of operation. Self-certification compliance.

The government has loosed the norms for startups and their backers to seek exemption from Angel Tax. But the tax remains. Almost 14,000 startups have been registered by DPIIT through its portal. [4]


Media has pointed out the policy has failed to boost job growth while most startups were unable to receive what they wanted most, tax exemptions.[5]

Framing E-Commerce Rules[edit]

Intellectual Property Rights[edit]

DPITT is also responsible for intellectual property rights relating to patents, designs, trademarks, and Geographical indication of goods and oversees the initiative relating to their promotion and protection.


DPIIT is the nodal Department in Government of India for coordinating and implementing programmes with the United Nations Industrial Development Organization (UNIDO) in India. The Department also coordinates with apex Industry Associations such as Federation of Indian Chambers of Commerce and Industry, Confederation of Indian Industry,ASSOCHAM in their activities relating to promotion of industrial cooperation and to stimulate FDI into India.


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  3. ^ "DIPP has stopped releasing FDI data for past 6 months despite RBI inputs". Business Standard. 16 January 2019. Retrieved 26 January 2019.
  4. ^ "Why a Startup India certificate may be worth no more than a piece of paper". Business Standard. 17 January 2019. Retrieved 26 January 2019.
  5. ^ "Why a Startup India certificate may be worth no more than a piece of paper". Business Standard. 22 January 2019. Retrieved 26 January 2019.

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