The Role of the Department of Industrial Policy & Promotion

Posted by Reading Time: 5 minutes

By: Dezan Shira & Associates
Editor: Kimberly Momin

The Department of Industrial Policy & Promotion (DIPP) is an important government organization that promotes and regulates industrial growth and production in India. It falls under the aegis of the Ministry of Commerce and Industry. Established in 1995, the DIPP was merged with the Department of Industrial Development in 2000.

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The role and functions of the DIPP are as follows:

  • To formulate and implement the industrial policy and strategies for industrial development conforming to national development needs and objectives;
  • To monitor general industrial growth as well as the performance of industries specifically assigned to it under the Allocation of Business Rules established in 1961;
  • To provide advice on all industrial and technical matters;
  • To formulate the foreign direct investment (FDI) policy and promotion through its approval and facilitation;
  • To function as the nodal department for investment-related issues in bilateral/regional economic cooperation agreements;
  • To encourage foreign technology collaboration at the enterprise level and formulate policy parameters towards its implementation;
  • To formulate policies related to intellectual property rights in the fields of patents, trademarks, industrial designs and geographical indications of goods, and the administration of regulations & rules made there under the Administration of Industries (Development & Regulation) Act of 1951;
  • To compile the wholesale price index and the monthly industrial production statistics used in the creation of the Index of Industrial Production;
  • To promote industrial development of underdeveloped areas of the country through international cooperation on industrial partnerships; and
  • To promote productivity, quality, and technical cooperation.
Major Projects and Initiatives

At present, the DIPP has a number of ongoing long-term projects. These include the Industrial Infrastructure Upgradation Scheme (IIUS), the Delhi-Mumbai Industrial Corridor (DMIC) project, the Chennai-Bengaluru Industrial Corridor (CBIC), the Amritsar-Kolkata Industrial Corridor (AKIC), the Bengaluru-Mumbai Economic Corridor (BMEC), the Vizag-Chennai Industrial Corridor (VCIC), the Northeast-Myanmar Connectivity, and the National Industrial Corridor Development Authority (NICDA).

Most recently, the DIPP has been responsible for the launch of  ‘Invest India’, which is connected to the government’s flagship ‘Make in India’ initiative. DIPP oversees ‘Make in India’, which  was launched in 2014 to facilitate India’s transition towards becoming a major manufacturing hub and to attract foreign investments into the country. ‘Invest India’ is a joint venture company between the Government of India, Department of Industrial Policy & Promotion (DIPP), Federation of Indian Chambers of Commerce and Industry (FICCI), and various state governments. Invest India will promote and facilitate investments into India and act as the first reference point for foreign investors.

The DIPP has additionally taken specific measures to improve the ease of doing business within India through an initiative dubbed eBiz. The purpose of eBiz is to change or transform the business environment in India from being “department–centric to customer-centric” in providing services to the business community. This project will provide efficient, transparent and integrated electronic devices to investors and industry leaders in order to rapidly distribute up to date information on forms, procedures, licenses, permits, registrations, clearances and compliances.

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Observations: Many foreign businesses do not recognize the importance of the DIPP and its mission in India when investing within the country. India is one of the fastest growing and largest economies in the world. Thus, it becomes crucial to understand the country’s institutional landscape in order to take advantage of important schemes. In this regard, the DIPP acts as a regulator and administrator of the industrial sector, and the facilitator of new technology and FDI.

Companies that understand the relevance of the DIPP can use the department’s platform to their benefit in the establishment of important industrial and bureaucratic contacts while simultaneously promoting growth within the Indian economy. 


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