The Department of Industrial Policy & Promotion was established in the wake of the economic liberalization of India with an intention of regulation and administration of the industrial sector. The Departments’ role and functions have grown steadily ever. Today, the DIPP not only regulates the industrial sector but also a facilitator of technology and investment flows in an ever growing and liberalized Indian economy.

Following the Department's key focus areas:

Formulation and Implementation of India's Industrial Policy

The Department 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. It is responsible for the overall Industrial Policy. It also monitors the growth and development in certain key industrial areas and makes appropriate policy amendments to address the emerging concerns.

Formulation and Amendment of the FDI policy

The DIPP is responsible for formulation of the FDI policy and facilitation of FDI inflows into the country. The department provides direct assistance in the resolution of problems faced by foreign investors. It also disseminates information about the positive investment climate that exists in the Indian economy to promote investments. The Department also encourages and facilitates foreign technology collaborations among Indian companies and bilateral Economic cooperation agreements in the region.

Industrial Promotion

The Department is involved in promotion of industry throughout the country. As a part of this responsibility, the Department monitors and stimulates industrial growth, promotes industrial activity in remote and underdeveloped areas of the country and undertakes programmes for improving productivity and quality. Through its Infrastructure Up gradation Scheme (IIUS) the department works towards enhancing competitiveness of the domestic industry.

Formulation and Implementation of Intellectual property Rights Policy

The DIPP recognise the importance of Intellectual Property in the day to days' global business environment. The Department formulates and implements a comprehensive Intellectual Property Rights policy covering Patents, Designs, Trade Marks and Geographical Indications of Goods. Apart from this the Department works towards creating awareness regarding IPRs by working closely with organisations such as the World Intellectual Property Organization (WIPO).