An Overview of the Department for Promotion of Industry and Internal Trade (DPIIT)

With the inclusion of Internal Trade to its mandate, the DIPP underwent a transformation to become the Department for Promotion of Industry and Internal Trade (DPIIT). Operating under the Ministry of Commerce and Industry, the DPIIT is a central government agency tasked with creating and implementing growth strategies for the Industrial Sector, along with other Socio-Economic objectives and national priorities.

The Rationale Behind the New Mandate

The Confederation of All India Traders Association (CAIT) had been advocating for a dedicated Ministry of Internal Trade for some time. The decision to merge internal and external trade into a single department is seen as a progressive step towards the creation of a separate Ministry.

The Key Roles and Functions of DPIIT

Since its establishment in 1995, the DIPP, now DPIIT, has been responsible for the formulation and execution of the overall industrial policy, while individual ministries handle the production, distribution, development, and planning aspects of specific industries.

However, the role of the Department has evolved over time, moving from regulating and administering the industrial sector to facilitating investment and technology flows and monitoring industrial development in a liberalized environment.

• Industrial Policies
  • The DPIIT is responsible for formulating and implementing the Industrial Policy in India . This includes developing strategies to support industry growth in alignment with national development goals and objectives.
  • It also monitors overall industrial growth, focusing specifically on the performance of industries assigned to it and providing advice on all industrial and technical matters.
• Foreign Direct Investment (FDI)
  • The department formulates, promotes, and facilitates policies related to Foreign Direct Investment (FDI) .
  • It also encourages enterprise-level collaborations and formulates policy parameters for Foreign Technology.
• Intellectual Property Rights
  • The DPIIT formulates policies related to Intellectual Property Rights .
  • These policies cover various fields, including:
    • Industrial Designs
    • Patents and Trademarks
    • Geographical Indications of Goods
  • The department also administers the rules and regulations under the Administration of Industries Act of 1951.
• It promotes industrial development in backward areas and the North Eastern Region, and fosters international industrial partnerships.
• It also encourages productivity, quality, and technical cooperation.

Key Initiatives: Make in India and Startup India

Make in India

Launched in 2014, Make in India is a government initiative aimed at boosting the domestic manufacturing sector and attracting investment into the country.

• The government's goal with this initiative is to revitalize the manufacturing sector, stimulate economic growth, and improve the country's ‘Ease of Doing Business’ Index .
• The long-term vision is to gradually establish India as a global manufacturing hub, and in the process, create more job opportunities in the country.

For more information on Make in India , click here.

Startup India

The main objective of Startup India is to eliminate restrictive government policies, such as:

1. License Raj
2. Land Permissions
3. Foreign Investment Proposals
4. Environmental Clearances

The Startup India scheme is primarily based on three pillars:

• Providing funding support and incentives to the country's various start-ups.
• Promoting Industry-Academia Partnership and Incubation.
• Simplification and Handholding.

To learn more about Startup India, click here.

DPIIT Programmes and Schemes

Here are some of the programmes and schemes run under the DPIIT:

1. The Transport Subsidy Scheme (1971) was launched to promote industrialization in remote, hilly, and inaccessible areas. It was discontinued in 2016.
2. The North East Industrial and Investment Promotion Policy (NEIIPP), 2007.
3. The North East Industrial Development Scheme was initiated on 1st April 2017 and will run until 30th March 2022.
4. The Industrial Development Scheme 2017, which was recently amended to include the Union Territory of Jammu & Kashmir and Ladakh. The scheme will run until 31st March 2021.
5. Infrastructure development projects such as the Delhi Mumbai Industrial Corridor (DMIC) project, which was approved in 2007. Other industrial corridors are also being pursued.
6. The DPIIT is also involved in GI promotion activities. As of August 2020, the department has notified 370 GI applications.

Aspirants can practice Indian Polity and Economics old questions asked in UPSC Mains from the links mentioned below:

1. Polity Questions for UPSC Mains
2. Economics Questions for UPSC Mains GS 3