Department for Promotion of Industry and Internal Trade (DPIIT)

The Department for Promotion of Industry and Internal Trade (DPIIT) is a central government department under the Ministry of Commerce and Industry in 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.

The Department in its current form came into being on 27 January 2019, when the erstwhile Department of Industrial Policy & Promotion was renamed to Department for Promotion of Industry and Internal Trade (DPIIT) after internal trade was added to its mandate.[1]

The current Minister is Piyush Goyal while the top bureaucrat is Dr. Guruprasad Mohapatra, IAS.[2]

History

The Department was originally established in 1995, and was reconstituted in the year 2000 with the merger of Department of Industrial Development.

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.

Responsibilities

New Industrial Policy

It is currently working to frame a new industrial policy, to be the third such policy in India since its independence in 1947. However, the deadline for completing the policy has been repeatedly pushed back since January, 2018.[3]

India Investment Grid

The department has created an online portal called the India Investment Grid (IIG), an interactive investment portal providing details of sectors, states and projects in which domestic and foreign investors may sink in capital.[4] in association with Invest India,[5] India's national investment and facilitation agency. 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.

Boosting Startup growth

The department is the nodal body for the Startup India initiative, which 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.

According to the government, the focus 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, as well as 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.[6]

Framing E-Commerce Rules

The department is currently framing the e-commerce policy, a set of rules aimed at streamlining and regulating the digital business ecosystem.[7][8]

Intellectual Property Rights

DPIIT 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.[9]

Criticism

Falling FDI growth

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.[10]

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.

Low Startup competitiveness

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.[11]

References
  1. "Govt arms DIPP with policy oversight to assume singular control over retail". Business Standard. 31 January 2019. Retrieved 23 September 2019.
  2. "guruprasad-mohapatra-takes-charge-dpiit-secretary". zeenews. Retrieved 16 August 2019.
  3. "Govt decides to return to drawing board on proposed industrial policy". Business Standard. 11 March 2019. Retrieved 23 September 2019.
  4. "India Investment Grid : Explore opportunities in India". India Investment Grid. Retrieved 23 September 2019.
  5. https://www.investindia.gov.in/
  6. Chakraborty, Subhayan; Choudhury, Karan (17 January 2019). "Why a Startup India certificate may be worth no more than a piece of paper". Business Standard. Retrieved 14 September 2019.
  7. Chakraborty, Subhayan; Choudhury, Karan (19 May 2019). "Tech giants put India plans on hold, seek clarity on e-commerce policies". Business Standard. Retrieved 23 September 2019.
  8. Chakraborty, Subhayan; Choudhury, Karan (1 July 2019). "Digital firms, traders to discuss e-commerce policy with Piyush Goyal". Business Standard. Retrieved 23 September 2019.
  9. "Wait time for patent examination to be cut to 18 months by March 2018". Business Standard. 28 April 2017. Retrieved 23 September 2019.
  10. "DIPP has stopped releasing FDI data for past 6 months despite RBI inputs". Business Standard. 16 January 2019. Retrieved 26 January 2019.
  11. Chakraborty, Subhayan (22 January 2019). "Why a Startup India certificate may be worth no more than a piece of paper". Business Standard. Retrieved 14 September 2019.
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