Origin
- The Department for Promotion of Industry and Internal Trade (DPIIT) was established in 1995. It was originally called the Department of Industrial Policy & Promotion (DIPP).
- In 2000, the DIPP merged with the Department of Industrial Development to form the DPIIT.
About
- Ministry:
- Ministry of Commerce & Industry
- The Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry, plays a critical role in the economic development of India. It is responsible for facilitating the growth of industries and promoting internal trade, which are key drivers of the nation’s economy.
Introduction to DPIIT
- The DPIIT was established to serve as a strategic unit for the promotion of industrial development and to create a conducive environment for businesses to thrive in India. The Department’s objectives span various sectors, including manufacturing, industrial policy formulation, investment promotion, and internal trade management.
Key Objectives of DPIIT
- Facilitate industrial development and growth.
- Promote internal trade and ease of doing business.
- Create an ecosystem that attracts domestic and foreign investments.
- Formulate policies related to industrial infrastructure and ease of business operations.
- Foster a competitive and vibrant industrial environment.
Key Functions of DPIIT
- Industrial Policy and Strategy Formulation
- DPIIT plays a significant role in formulating national industrial policies, which aim to make India a global hub for manufacturing and services. The Department is responsible for guiding the evolution of policies that promote economic growth, job creation, and skill development across sectors.
- Investment Promotion
- DPIIT is central to promoting both domestic and foreign investments in India’s industrial sector. It oversees the Foreign Direct Investment (FDI) policy and facilitates the inflow of foreign capital into the country.
- Make in India Initiative
- One of the landmark initiatives launched by DPIIT is the Make in India program. Launched in 2014, this initiative aims to transform India into a global manufacturing hub by encouraging both multinational and domestic companies to manufacture their products in India. The initiative focuses on 25 key sectors, including automobiles, textiles, electronics, and defense manufacturing.
- Ease of Doing Business
- DPIIT is a key player in the government’s effort to improve the business environment in India. Under this initiative, the Department works to reduce regulatory hurdles, simplify procedures, and encourage entrepreneurs to invest and start businesses. The Doing Business Report by the World Bank serves as a critical metric, and DPIIT plays an active role in improving India’s rankings in this global index.
- Promotion of Startups
- DPIIT is also responsible for the promotion of startups in India. The Startup India initiative, launched in 2016, was a major step in fostering innovation, entrepreneurship, and job creation. The program includes financial support, regulatory relaxations, tax exemptions, and incubators to support nascent companies.
- Intellectual Property Rights (IPR)
- DPIIT helps create an environment conducive to the protection and enforcement of intellectual property rights. The Department oversees the Intellectual Property India (IPO India) to promote IPR awareness, filings, and create a competitive edge for Indian businesses in global markets.
Major Initiatives and Programs by DPIIT
- Make in India
- This is one of the flagship programs of the Government of India, aimed at encouraging multinational and domestic companies to manufacture in India. Make in India has attracted foreign investments, created jobs, and boosted India’s manufacturing sector.
- Startup India
- Launched in 2016, the Startup India initiative has significantly increased the number of startups in India. With various benefits like self-certification, tax exemptions, and easier regulations, it has made the country an attractive destination for entrepreneurs.
- Digital India
- Under the Digital India initiative, DPIIT has promoted the use of technology in industry and commerce. The Department has supported the digital transformation of businesses by introducing e-commerce platforms, promoting digital payments, and supporting online registrations and certifications for businesses.
- Atmanirbhar Bharat
- The Atmanirbhar Bharat (Self-Reliant India) initiative, launched in 2020, aims to build a robust domestic manufacturing sector that will reduce India’s dependency on foreign products. DPIIT plays an integral role in the policy design and execution of this ambitious program, particularly in sectors like defense, electronics, and pharmaceuticals.
- Foreign Direct Investment (FDI)
- DPIIT is the main body for overseeing and regulating FDI policies in India. The Department works to simplify FDI rules, making the country a more attractive destination for global investors.
Achievements of DPIIT
- Improved Ease of Doing Business:
- India’s ranking improved significantly in the World Bank’s Ease of Doing Business report due to regulatory reforms introduced by DPIIT, including the introduction of the Goods and Services Tax (GST), the Insolvency and Bankruptcy Code (IBC), and the Startup India Action Plan.
- FDI Inflow Growth:
- India has seen a steady increase in FDI inflows, especially in sectors like technology, manufacturing, and infrastructure. In FY 2023, India attracted around $84 billion in FDI.
- Startup Growth:
- India has become one of the largest startup ecosystems globally, with thousands of startups across diverse sectors, particularly technology, e-commerce, and Fintech.
Challenges and Areas of Improvement
Despite its successes, DPIIT faces several challenges that need addressing for continued growth:
- Infrastructure Deficiencies:
- Industrial infrastructure in some parts of India remains inadequate. Addressing issues like power shortages, connectivity, and logistics is crucial for sustained industrial development.
- Skilling the Workforce:
- While initiatives like Skill India are in place, a significant portion of the workforce needs to be trained in newer technologies to meet the demands of modern industries.
- Policy Consistency:
- Frequent changes in policies, especially relating to taxes and industrial regulations, can deter investment and business expansion. Ensuring policy consistency and transparency is vital for future growth.
Conclusion
- The Department for Promotion of Industry and Internal Trade (DPIIT) plays a pivotal role in shaping the industrial and economic future of India.
- Its initiatives, such as Make in India, Startup India, and Atmanirbhar Bharat, are essential in fostering innovation, creating jobs, and ensuring sustainable growth across sectors.
- Through continuous reforms and a focus on enhancing ease of doing business, DPIIT has set the stage for India’s industrial growth.
By overcoming challenges and embracing newer technologies and global partnerships, DPIIT will continue to drive India toward becoming a global industrial powerhouse.
