Overview
The Department for Promotion of Industry and Internal Trade (DPIIT) is a key department under the Ministry of Commerce and Industry, Government of India. It is the nodal authority for industrial policy, foreign direct investment (FDI), ease of doing business, startup ecosystem, and intellectual property rights (IPR) in India.
Originally established as the Department of Industrial Policy and Promotion (DIPP), it was renamed as DPIIT in January 2019 to reflect its expanded mandate, particularly covering internal trade and logistics.
Core Mandate and Functions
- Formulation and implementation of industrial policy to promote manufacturing and investment
- FDI policy formulation, including sectoral caps, automatic and government approval routes
- Ease of Doing Business reforms in coordination with States and Union Territories
- Promotion of internal trade and logistics efficiency
- Startup ecosystem development through policy and regulatory support
- Intellectual Property Rights administration, including patents, trademarks, and designs
- Monitoring of industrial corridors, clusters, and manufacturing zones
Key Policy Areas Handled by DPIIT
1. Foreign Direct Investment (FDI)
- Frames and updates India’s FDI Policy
- Oversees Press Notes and Consolidated FDI Policy Circular
- Facilitates investor approvals through the FDI Facilitation Portal
- Coordinates with RBI and other ministries on capital inflows
2. Ease of Doing Business (EoDB)
- Leads India’s reform agenda to improve the business regulatory environment
- Works with States under Business Reform Action Plan (BRAP)
- Focuses on:
- Single-window clearances
- Time-bound approvals
- Decriminalisation of minor business offences
Startup India Initiative
- DPIIT is the nodal department for Startup India
- Recognises startups under the Startup India Framework
- Provides:
- Tax benefits and exemptions
- Faster patent examination
- Access to Fund of Funds for Startups (FFS)
- Aims to build innovation-driven entrepreneurship, especially in Tier-II and Tier-III cities
Intellectual Property Rights (IPR)
- DPIIT administers India’s IPR ecosystem through:
- Controller General of Patents, Designs & Trade Marks (CGPDTM)
- Implements the National IPR Policy
- Focus on:
- Faster patent processing
- Awareness and capacity building
- Balancing innovation with public interest
Internal Trade and Logistics
- Responsible for promotion of internal trade
- Works on:
- Logistics efficiency
- Reduction in logistics cost as % of GDP
- Plays a central role in:
- National Logistics Policy
- PM Gati Shakti – National Master Plan
Major Schemes and Initiatives
- Startup India
- Make in India
- Production Linked Incentive (PLI) Schemes (policy coordination role)
- National IPR Policy
- National Logistics Policy
- PM Gati Shakti
- Industrial Corridor Development Programme
Role in Federal Cooperation
- Coordinates with State governments on:
- Investment promotion
- Industrial land banks
- Regulatory reforms
- Encourages competitive federalism in industrial growth
Significance for India
- Central to India’s manufacturing and investment-led growth strategy
- Plays a key role in improving India’s global investment attractiveness
- Supports transition towards:
- Atmanirbhar Bharat
- Global value chain integration
- Innovation-driven economy
Challenges
- Balancing investor facilitation with regulatory oversight
- Addressing inter-state disparities in business reforms
- Ensuring effective implementation of policies on ground
- Aligning industrial growth with sustainability and labour welfare
Conclusion
The DPIIT functions as the policy nerve-centre of India’s industrial and investment ecosystem. By integrating industrial promotion, internal trade, startups, and IPR under one umbrella, it plays a decisive role in shaping India’s economic competitiveness, entrepreneurial depth, and long-term growth trajectory.
