The Ministry of Commerce & Industry is a key Union ministry responsible for formulating and implementing policies related to trade, industry, investment promotion, and industrial development in India. It plays a central role in integrating the Indian economy with global markets while strengthening domestic industrial capacity.

Structure of the Ministry

The Ministry has two main departments:

1. Department of Commerce

• Deals with foreign trade, export promotion, and trade facilitation.
• Formulates and implements the Foreign Trade Policy (FTP).
• Handles multilateral and bilateral trade negotiations (WTO, FTAs, CECA, CEPA).
• Oversees institutions such as:
  • Directorate General of Foreign Trade (DGFT)
  • Export Promotion Councils
  • Special Economic Zones (SEZs)

2. Department for Promotion of Industry and Internal Trade (DPIIT)

• Responsible for industrial policy formulation.
• Promotes foreign direct investment (FDI) and domestic investment.
• Coordinates flagship initiatives such as:
  • Startup India
  • Make in India
  • Production Linked Incentive (PLI) schemes
• Administers laws related to:
  • Intellectual Property Rights (IPR)
  • Industrial corridors
  • Ease of Doing Business

Key Functions

• Promotion and regulation of domestic and international trade.
• Attracting and regulating FDI and industrial investment.
• Development of industrial infrastructure and clusters.
• Framing policies for exports, imports, and trade remedies.
• Protection and promotion of intellectual property rights.
• Supporting MSMEs and startups through policy coordination.

Major Policy Instruments

• Foreign Trade Policy (FTP)
• FDI Policy (issued by DPIIT)
• Export promotion schemes
• PLI Schemes for manufacturing competitiveness
• Trade Remedies: Anti-dumping, countervailing duties, safeguards

International Role

• Represents India in:
  • World Trade Organization (WTO)
  • Regional and bilateral trade negotiations
• Works to balance trade liberalisation with domestic industry protection.
• Addresses global trade issues such as supply chain resilience and market access.

Recent Focus Areas

• Strengthening India’s position in global value chains.
• Boosting manufacturing-led growth and exports.
• Reducing trade deficits through import substitution and export diversification.
• Improving ease of doing business and regulatory simplification.
• Promoting strategic trade partnerships amid global economic realignments.

Significance

• Acts as a bridge between domestic industry and global markets.
• Central to India’s goals of Atmanirbhar Bharat and Viksit Bharat 2047.
• Plays a decisive role in shaping India’s trade, investment, and industrial trajectory.

Conclusion

The Ministry of Commerce & Industry is a cornerstone of India’s economic governance. By balancing trade openness with industrial development, it seeks to enhance competitiveness, promote innovation, and secure India’s long-term economic interests in a rapidly changing global economy.