Home About Us Role and Functions of the Department for Promotion of Industry and Internal Trade

Role and Functions of the Department for Promotion of Industry and Internal Trade

Introduction

The Department for Promotion of Industry and Internal Trade (DPIIT) was established in the year 1995 and was reconstituted in the year 2000 with the merger of the Department of Industrial Development. Earlier, separate Ministries of Small Scale Industries & Agro and Rural Industries (SI &A& RI) and Heavy Industries and Public Enterprises (HI&PE) were created in October, 1999. The department was earlier called Department of Industrial Policy & Promotion and was renamed as DPIIT in January, 2019.

In 2018, matters related to e-commerce were transferred to the Department and in 2019, the Department has been given charge for matters related to Internal Trade, welfare of traders and their employees and Startups. The role of DPIIT is to promote/accelerate industrial development of the country by facilitating investment in new and upcoming technology, foreign direct investment and support balanced development of industries.

Allocation of Business to the Department

According to the Allocation of Business (AOB) Rules, as updated, the Department is responsible for determining the Industrial Policy at Central Government level, including the following matters:

  1. Productivity in Indian industry
  2. Industrial Management
  3. Matters related to e-Commerce and start-ups
  4. Facilitating Ease of Doing Business (EoDB)
  5. Promotion of internal trade including retail trade, welfare of traders and their employees, and
  6. Administration of Industries (Development and Regulation) Act, 1951, grant of Industrial Licenses (IL) and acknowledging Industrial Entrepreneurs Memorandum (IEM).

The Department handles matters related to protection of Intellectual Property Rights (IPR) in fields of Patents, Trademarks, Copyrights, Industrial Designs and Geographical Indications of Goods and administers Acts, Regulations and Rules made thereunder. The department also handles matters related to Foreign Direct Investment (FDI) and investment by NRIs, and undertakes promotion of investment for industrial development of the country. There are five territorial divisions for international cooperation and industrial promotion handling matters emanating from America, Europe, CIS countries, Africa and Middle East, Asia and Oceania.

The Department is responsible for promotion and development of sectors related to Cables, Light Engineering Industries, Light Industries, Light Electrical Engineering Industries, Paper & Newsprint, Tyres & Tubes, Salt, Cement, Ceramics, Tiles & Glass, Leather Goods Soaps & detergents and Industries not covered by other Ministries/Departments.

The following legislations are administered by the Department:

  1. The Industries (Development and Regulation ) Act, 1951
  2. The Explosives Act, 1884
  3. The Inflammable Substances Act, 1952
  4. The Boilers Act, 1923
  5. The Copyright Act, 1957
  6. The Patents Act, 1970
  7. The Design Act, 2000
  8. The Geographical Indications of Goods (Registration and Protection) Act, 1999;
  9. The Trade Marks Act, 1999
  10. The National Institute of Design Act, 2014.

Make in India (MII)

Make in India initiative was launched on 25th September 2014, along with action plans for 25 sectors with the objective of facilitating investment, fostering innovation, building best in class manufacturing infrastructure, making it easy to do business and enhancing skill development. The initiative is further aimed at creating a conducive environment for investment, modern and efficient infrastructure, opening up new sectors for foreign investment and forging a partnership between government and industry through positive mindset.

MII initiatives have made significant achievements and has been reviewed now, focusing on 27 sectors under Make in India 2.0. DPIIT is coordinating action plans for 15 manufacturing sectors, while Department of Commerce is coordinating action plan for 12 service sectors.

DPIIT is making continuous efforts for Investment Facilitation including utilizing the services of Invest India and implementation of MII action plans to identify potential investors. Support is being provided to Indian Missions abroad and State Governments for organizing events, summits, road-shows and other promotional activities to attract investment in the country under the MII banner. Investment Outreach activities are being carried out for enhancing International co-operation for promoting FDI and to improve Ease of Doing Business in the country.

Project Monitoring Group (PMG)

Project Monitoring Group (PMG), was set up in Cabinet Secretariat in 2013 and has recently been merged with DPIIT w.e.f. 14.02.2019, with Invest India providing implementation support in its functioning. It is an institutional mechanism for resolving of issues and bottlenecks and fast tracking the setting up and commissioning of large infrastructure projects in Public and Private sectors.

Any investor facing delays or bottlenecks in the execution of a project with an estimated value of Rs. 500 crore and above can raise them on the PMG portal, which in turn takes them up with the concerned authorities in the Central or State Governments, until the issues are decided.

Since its inception, PMG has received more than 4000 issues in respect of 1067 projects and unlocked anticipated financial investment of approx. Rs. 32.00 lakh crore. Of these, 340 project have been partly/fully commissioned with actual flow of investment amounting to Rs. 11.66 lakh crore approx till 13.1.2020, while 236 projects worth Rs. 8.50 lakh crore were under construction.

Invest India

Invest India has been set up as a Joint Venture (Not for Profit) Company between DPIIT, Federation of Indian Chambers of Commerce & Industry (FICCI), CII, NASSCOM and various State Governments. Invest India is the National Investment Promotion and Facilitation Agency of India and acts as the first point of reference for investors in India. Invest India is transforming the country’s investment climate by simplifying the business environment for investors. Its experts, specializing across different countries, Indian states and sectors, handhold investors through their investment lifecycle – from pre-investment to after-care. Invest India provides multiple forms of support such as market entry strategies, deep dive industry analysis, partner search and location assessment policy advocacy with decision makers.

Public Procurement

The Public procurement (Preference to Make in India ) order 2017 (PPP-MII Order) had been issued on 5th June, 2017 pursuant to Rule 15.3(iii) of the General Financial Rules, 2017 as an enabling provision to promote domestic value addition in public procurement.

This Order is applicable for procurement of goods, services and works (including turnkey works ) by a Central Ministry/Department, their attached/subordinate offices, autonomous bodies controlled by the Government of India and Government companies as defined in the Companies Act.

Under the PPP-MII Order, a Standing Committee, headed by Secretary, DPIIT has been constituted to review the implementation of order. A Public procurement Cell has been created in the Department to monitor the grievances received for violation of PPP-MII order. 19 Nodal Departments have been designated for notifying minimum local content for the relevant product.

Ease of Doing Business (EODB)

In order to improve the business environment in the country, DPIIT has taken up a series of measures to simplify and rationalize the regulatory processes (registration and inspection processes) and introduce ‘information technology’ as enabler to make governance more efficient.

India ranks 63rdin the World Bank’s annual Doing Business Report (DBR) 2020 as against 77th rank in the DBR 2019 registering a jump of 14 ranks. The DBR ranks countries on the basis of Distance to Frontier, an absolute score that measures the gap between India and the global best practice on 10 specified indicators. India’s absolute score improved from 67.32 in DBR 2019 to 71.00 in DBR 2020. The ease of doing business index is meant to measure regulations directly affecting business and a nation’s rank is based on the average of 10 indicators viz. starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across border, enforcing contracts and resolving insolvency.

States too have been brought on board in the process to expand the coverage of these efforts. DPIIT has been closely working with the state Governments and Union Territory (UT) Administrations to help them identify the constraints in doing business and improving the overall business environment. DPIIT launched an online portal to track implementation of reforms in a real-time basis. The same is available of
https://eodb.dipp.gov.in/.

The assessment of State Reform Action Plans have been successfully completed for the year 2015, 2016 and 2017-2018. The ranking can be accessed on
https://eodb.dipp.gov.in/. The assignment of states and UTs under state reform action plan 2019 is underway.

DPIIT has also prepared a 218 point District Reforms Plan and shared with States and UTs for implementation of reforms by all the districts. States and UTs will conduct the feedback exercise in districts on the basis of a questionnaire.

Start-up India

Startup India is a flagship initiative of the Government of India, intended to catalyze startup culture and build a strong and inclusive ecosystem for innovation and entrepreneurship in India. The Startup India Action Plan was launched on 16th January, 2016 with the objective of supporting entrepreneurs, building up a robust startup ecosystem and transforming India into a country of job creators instead of job seekers. DPIIT acts as the nodal Department for coordinating the efforts of all central governmental departments and state governments in carrying this plan forward.

Foreign Direct Investment (FDI) Policy

The DPIIT is the nodal Department for formulation of policy of the Government on Foreign Direct Investment (FDI). It is also responsible for maintenance and management of data on inward FDI into India, based upon the remittances reported by the Reserve Bank of India. With a view to attracting higher levels of FDI, Government has put in place a liberal policy on FDI under which FDI up to 100% is permitted under the automatic route in most sectors/activities. Significant changes have been made in the FDI policy regime in recent times to ensure that India remains an increasingly attractive investment destination. The Department plays an active role in the liberalization and rationalization of the FDI policy. Towards this end, it has been constructively engaged in the extensive stakeholder consultations on various aspects of the FDI Policy.

Further, after abolition of the erstwhile Foreign Investment Promotion Board (FIPB), process for granting FDI approvals has been simplified wherein the work relating to processing of applications for FDI and approval of the Government thereon under the extant FDI Policy and FEMA, is now handled by the concerned Ministries/Departments. However, DPIIT is a single point interface of the Government to facilitate investors for FDI through approval route. In this regard a new portal (http://www.fifp.gov.in ) has been created, which is administered by this Department and the portal will continue to facilitate as the single window clearance of applications which are through approval route. DPIIT is the nodal Department for approvals in case of Multi Brand Retail trading, Food Product Retail trading, Non-Resident Indian/Export oriented Units investments. Cases pertaining to issue of shares against capital goods/machinery/pre-operative and pre-incorporation expenses are also processed by DPIIT.

National IPR Policy

The National IPR Policy, approved on 12th May, 2016 lays the roadmap for intellectual property in India. The Policy recognizes the abundance of creative and innovative energies that flow in India, and the need to tap into and channelize these energies towards a better and brighter future for all. The National IPR Policy is a vision document that aims to create and exploit synergies between all forms of intellectual property (IP), concerned statutes and agencies. It sets in place an institutional mechanism for implementation, monitoring and review. It aims to incorporate and adapt global best practices to the Indian scenario. This policy shall weave in the strengths of the Government, research and development organizations, educational institutions, corporate entities including MSMEs, start-ups and other stakeholders in creation of an innovation-conducive environment, which stimulates creativity and innovation across sectors, as also facilitates a stable, transparent and service-oriented IPR administration in the country.

The policy recognizes that India has a well established Trade Related Intellectual Property Rights (TRIPS)- compliant legislative administrative and judicial framework to safeguard IPRs, which meets its international obligations while utilizing the flexibilities provided in the international regime to address its developmental concerns. It reiterates India’s commitment to the Doha Development Agenda and the TRIPS agreement.

The Policy lays down the following objectives:

  1. IPR Awareness: Outreach and Promotion to create public awareness about the economic, social and cultural benefits of IPRs among all sections of society.
  2. Generation of IPRs: To stimulate the generation of IPRs.
  3. Legal and Legislative Framework: To have strong and effective IPR laws, which balance the interests of rights owners with larger public interest.
  4. Administration and Management: To modernize and strengthen the enforcement and adjudicatory mechanisms for combating IPR infringements.
  5. Human Capital Development: to strengthen and expand human resources, institutions and capacities for teaching, training, research and skill building in IPRs

These objectives are sought to be achieved through detailed action points. The action by different Ministries/Departments shall be monitored by DPIIT, which shall be the nodal department to coordinate, guide and oversee implementation and future development of IPRs in India. The national IPR Policy will endeavor for a “Creative India; Innovative India”.

Intellectual Property Appellate Board (IPAB) is a statutory body, established under section 83 of the Trade Marks Act, 1999 on 15th September, 2003 to hear the appeals against the decisions related to grants of Patents, Registration of Trademarks and Geographical Indications. The Copyright Board has also been merged with IPAB vide Finance Act, 2017. Also Plant Varieties Protection appellate Board functions through IPAB under the transitional provisions in Section 59 of the Protection of Plant Varieties and Farmers’ Rights Act, 2001.

National Design Policy

The National Design Policy was approved by the Government on 8th February, 2007, which inter-alia, includes:

  1. Promotion of Indian design through a well-defined and managed regulatory, promotional and institutional framework.
  2. Setting up of specialized Design Centres of “Innovation Hubs” for sectors such as automobiles and transportation, jewelry, leather, soft goods, digital products, toys and games, which will provide common facilities and enabling tools like rapid product development, high performance visualization, etc. along with enterprise incubation as well as financial support through mechanisms like venture funding, loans and market development assistance for start-up design-led ventures and young designers’ design firms/houses.
  3. Formulation of schemes for setting up Design Centres/Innovation Hubs in selected locations/industrial clusters/backward states, particularly in the North east.
  4. Laying special focus on up gradation of existing design institutes and faculty resources to international standards, particularly the National Institute of Design (NID) and its new campuses/centres with a view to spreading quality education in design to all regions of India.
  5. Initiation of action to seek “Deemed University” or “ University” under section 3(f) of the University Grants Commission Act, status for NIDs, so that they can award degrees or ‘B. Des.’ and ‘M. Des.’ instead of just diplomas as at present.
  6. Encouraging establishment of Departments of design in all the Indian Institutes of Technology (IITs) and all the National Institutes of Technologies (NITs) as well as in prestigious private sector colleges of engineering and architectures.
  7. Preparation of a mechanism for recognizing and awarding industry achievers in creating a brand image for India design through award of India Design Mark on designs which satisfy key design criteria like originality, innovation, ergonomic features, safety and Eco-friendliness.
  8. Facilitating the establishment of a Chartered Society for designers (on the lines of institutions of engineers, the institution of Architects., the Medical Council, the Bar Council, etc.), to govern the registration of Design Professionals and various matters relating to standards setting in the profession.
  9. Setting up an Indian Design Council (IDC) with eminent personalities drawn from different walks of life.

The Design Clinic Scheme project being implemented by NID across the country is intended to improve the manufacturing competency of the MSMEs through design intervention to their products and services and to provide them design edge in the global market and hence supports the Make in India programme of the Government of India.

Industrial Park Rating System (IPRS)

To further enrich the system, DPIIT has developed Industrial Park Rating System(IPRS). The Department has released a pilot phase report on “Industrial Park Rating system” enhancing industrial competitiveness at a National Workshop held on 19th November, 2018 in New Delhi. The pilot phase of Industrial Park Rating System (IPRS) considered nominations received from States/UTs and analyzed information/responses received to bring a view on quality and adequacy of industrial infrastructure from Indian perspective. Nominated parks needed to have minimum 25% occupancy.

A total number of 202 Industrial Park nominations were received from 22 States/UTs. 177 parks out of the 202 nominated parks were considered for assessment. Response in respect of 25 parks nominated by States was incomplete. 177 industrial parks were assessed across 34 parameters under four pillars contributing to development of industrial ecosystem viz., Internal Infrastructure and Utilities, External Infrastructure and Connectivity, Business Support Services & Facilities, Environment & Safety Management.

The Industrial Park Rating System is expected to evolve to deliver the following objectives:

  1. Provide information to prospective tenants and compare parks on various choices of identified parameters
  2. Enhance competitiveness of industrial parks and help identify areas of intervention
  3. Recognize best practices and promote competitive spirit among park developers and operators
  4. Identify requisite policy support to be delivered by state/central government for driving competitiveness of the ecosystem.

Going forward, Industrial Park Rating System (IPRS) is proposed to be translated into an annual exercise with wider coverage of industrial parks assessment across parameters relating to the development of industrial ecosystem. The parameters will be updated on an annual basis to address ongoing investor expectation trends and to bring in deeper qualitative assessment feedback including technological invention in order to develop Industrial Park Rating System as a tool that enables demand driven interventions both by policy makers and investors effectively.

IPR (Negotiation and Cooperation)

DPIIT is the nodal department for administration of various laws related to IPR in the country such as Patents, Trade Marks, Industrial Designs, Geographical Indications of Goods, Copyrights, and Semiconductor Integrated Circuits Layout Designs. Being nodal Department for IPR related matters, DPIIT has been vetting number of Memorandum of Understanding (MoUs) /Memorandum of Cooperation (MoCs) / Memorandum of Agreement (MoAs) /Cabinet Notes /Non Disclosure Agreement (NDAs) etc. entered into by various Ministries/ Departments of Government of India from IPR angle.The negotiations on IPR Chapter under various International Trade Agreements are also done by DPIIT.   Besides, DPIITis also the nodal department for matters related to World Intellectual Property Organization (WIPO).

The office of the Controller General of Patents, Designs and Trademarks (CGPDTM), a subordinate Office under DPIIT, carries out statutory functions related to grant of Patents and registration of Trademarks, Designs and Geographical Indications. The registration of copyrights is administered by the Registrar of Copyright Office, working under the CGPDTM. It functions out of offices situated in Delhi, Kolkata, Mumbai, Chennai and Ahmadabad, while the Central Intellectual Property Training Academy is at Nagpur.

The CGPDTM supervises the functioning of the following IP offices:

  1. The Patent Offices (including the Design Wing) at Chennai, Delhi, Kolkata & Mumbai.
  2. The Patent Information System (PIS) and Rajiv Gandhi National Institute of Intellectual Property Management (RGNIIPM) at Nagpur.
  3. The Trade marks Registry at Ahmadabad, Chennai, Delhi, Kolkata& Mumbai.
  4. The Geographical Indications Registry (GIR) at Chennai.
  5. The Copyright Office at Delhi.
  6. The Semiconductor Integrated Circuits Layout-Design Registry at Delhi.

Intellectual Property Appellate Board (IPAB): Intellectual Property Appellate Board (IPAB) has been established in the year 2003, under Section 84 of the Trade Marks Act, 1999.  The Board hears appeals against the decision of Controller of Patents (under the Patents Act, 1970), and Registrar of Trade Marks (under the Trade Marks Act, 1999) and Geographical Indication cases (under the Geographical Indication & Protection Act, 1999).  The Copyright Board and Plant Varieties Protection Appellate Tribunal function under the ambit of IPAB in accordance with their respective Acts and Rules.

Presently, IPAB has its Headquarters at Chennai and conducts its Circuit Bench sittings periodically at Ahmedabad, Delhi, Kolkata and Mumbai.

Cell for IPR PromotionAndManagement (CIPAM)

In pursuance of the National IPR Policy 2016, a specialized professional body/Cell for IPR Promotion and Management (CIPAM), was created under the aegis of DPIIT, which has been instrumental in taking forward the objectives and visions of the Policy. Since the adoption of the Policy, CIPAM has worked towards changing the IP landscape of the country, which inter-alia includes:

  1. IPR Awareness Programs are conducted in over 200 academic institutions for industry, police customs and judiciary.
  2. To reach out to rural areas, awareness programs are being conducted using satellite communication (EduSat). In one such programme, 46 rural schools with over 2700 students were reached. Over 300 schools and more than 12,000 students have been reached.
  3. More focus is being given to develop e-content and disseminate content through online channels.
  4. Content on IPRs has been included in the NCERT curriculum of commerce stream. Work is ongoing to include IPRs in other academic streams too.
  5. Competition has been launched in conjunction with industry for school and college students for developing mobile apps, videos and online games.
  6. India’s first IP Mascot-“IP Nani” – has been launched. A series of animated videos on Intellectual Property Rights for school students have been launched in collaboration with European Union Intellectual Property office(EUIPO).

Productivity and Quality

DPIIT is the nodal department for the promotion of productivity and quality in the industrial sector. The National Productivity Council (NPC) represents India in the Tokyo based Asian Productivity Organization (APO), of which the Government of India is a founder member and implements APO programmes/activities relating to India. NPC undertakes productivity augmentation through domain specific consultancy, training, workshops, seminars and conferences for Government, Public and Private sectors, Productivity related research, Monitoring & Evaluation of various government schemes & projects and information dissemination through collaboration with APO.

The Quality Council of India (QCI), another important organization under this Department, promotes adoption of quality standards relating to Quality Management Systems (ISO 9001 Series), Environment Management Systems (ISO 14001 Series), Food Safety Management Systems (ISO 22000 Series), Product certification and inspection bodies through the accreditation services provided by National Accreditation Board for Certification Bodies (NABCB). Besides NABCB, there are four other boards viz. National Accreditation Board for Education & Training (NABET); National Accreditation Board for Hospitals and Healthcare Providers (NABH); National Accreditation Board for Testing and Calibration Laboratories (NABL); and National Board for Quality Promotion(NBQP), which provide accreditation certification on education, health and quality promotion respectively.

United Nations Industrial Development Organization (UNIDO) Activities

DPIIT is the nodal Department for all matters related to UNIDO operations in India. UNIDO is a specialized agency of the United Nations for industrial activities within the United Nation’s system. India has been an active member of the organization since its inception. UNIDO has established its presence in India by means of following centres/offices with different mandates viz.

  1. UNIDO Regional Office (URO) which is headed by UNIDO Representative (UR to India and Asian region and
  2. International Centre for Inclusive and Sustainable Industrial Development (IC-ISID), New Delhi

The URO, set up in New Delhi or 1st January 2000, covers seven countries - India, Bangladesh, Sri Lanka, Nepal, Bhutan, Maldives and Afghanistan and acts as a focal point to mobilize knowledge, information and technology for the region.

UNIDO and DPIIT have worked on the preparation of the UNIDO Country Programming Framework 2018-2022. It is foreseen to continue and expand the ongoing work in regards to competitive and resilient MSMEs and climate, environment and resource solutions, complemented with new results areas in regard to inclusive value chains and responsible business and strategy for industrial transformation. These areas support the aims and objectives of the 2017 Industry Policy discussion paper of DPIIT and are aligned with the United Nations Sustainable Development Framework, agreed upon for 2018- 2022 between the United Nations in India and the Government of India, through NITI Aayog.

DPIIT has established a new centre, IC-ISID (International Centre for Inclusive and Sustainable Industrial Development) in collaboration with UNIDO after successful completion of UCSSIC and ICAMT. The centre started its operation from 1stMay 2015. The IC-ISID echoes the theme of UNIDO's post- 2015 development agenda i.e. Inclusive and Sustainable Industrial Development which aims to bring the best practices and new & improved manufacturing technology to Indian Industry and share India's experience in cluster based development within the framework of South- South Cooperation. DPIIT has undertaken 4 core projects under IC-ISID related to Leather, Pulp & Paper, Cement and Bicycle Sector. Out of these the Cement and Leather projects have been completed. The Bicycle project, which started w.e.f. 01.01.2017, has been operationally closed on 30.11.2019. The Pulp & Paper project, which started w.e.f. 01.08.2019, is still ongoing and is likely to be completed by 31.07.2022.

Industrial Development of North Eastern Region (NER)

To promote industrialization in North Eastern Region, the Government of India has notified North East Industrial Development Scheme (NEIDS) - 2017 for the States of North East Region including Sikkim effective from 01.04.2017 to 31.03.2022. The incentives under the scheme include- (i) Central Capital Investment Incentive for Access to Credit (CCIIAC) (ii) Central Interest Subsidy (CIS) (iii) Central Comprehensive Insurance Incentive (CCII) (iv)Goods and Services Tax (GST) Reimbursement (v) Income Tax (IT) Reimbursement (vi) Transport Incentive (TI) and (vii) Employment Incentive (El).

Under the erstwhile scheme, North East Industrial and Investment Promotion Policy (NEIIPP), 2007, which ended on 31st March, 2017, a total no. of 27,644 industrial units, were set up. These generated employment for 2,28,224 people and attracted an investment of Rs.11,466.22 crore in NER states up to 31.03.2017. Since inception of the scheme, a sum of Rs. 2,749.04 crore has been released to the States of NER. In the FY 2019-20 (upto 31.12.2019) Rs. 326.33 crore has been released under the scheme.

The Freight Subsidy Scheme, effective from 22nd January, 2013, is also applicable to the NER States including Sikkim for a period of 5 years. The Scheme has been discontinued, with effect from 22.11.2016. However, Industrial units registered under the scheme prior to discontinuation would be eligible for the benefits of the scheme. Since inception of the scheme, a total of Rs. 5,312.54 crore (approx.) has been released to the State/UTs.

Industrial Development of Lakshadweep and Andaman & Nicobar Island

A new scheme, namely: Lakshadweep and Andaman & Nicobar Island Industrial Development Scheme (LANIDS), 2018, has been notified for the Union Territories of Lakshadweep and Andaman & Nicobar Islands and will remain effective from 01.04.2018 to 31.3.2020. The incentives provided under the scheme are (i) Central Capital Investment Incentive for Access to Credit (CCIIAC) (ii) Central Interest Subsidy (CII) (iii) Central Comprehensive Insurance Incentive (CCII) (iv) Goods and Services Tax(GST) reimbursement (v) Income Tax (IT) reimbursement (vi) Transport Incentive (TI) and (vii) Employment Incentive(EI).

This Scheme is being administered by the Ministry of Home Affairs.

Programmes for Industrial Infrastructure Development- Modified Industrial Infrastructure Up-gradation Scheme (MIIUS)

Industrial Infrastructure Upgradation Scheme (IIUS) was launched in 2003 with the objective of enhancing industrial competitiveness of domestic industry by providing quality infrastructure through public private partnership in selected functional clusters/locations, which have the potential to become globally competitive. 37 projects have been approved in the 10th and 11thFive Year Plan under IIUS and these projects have been provided a central assistance of Rs. 1429.25 crore (up to 23.12.2019) out of sanctioned central grant of Rs.1455.64 crore.

'Modified Industrial Infrastructure Up-gradation Scheme (MIIUS)' was notified in July 2013. Under MIIUS, projects have been undertaken to upgrade infrastructure in existing Industrial Parks/ Estates, Areas. Greenfield projects have also been undertaken in backward areas and North Eastern Region (NER). Projects are being implemented by the State Implementing Agency (SIA) of the State Government. Central Grant up to 50% of the project cost with a ceiling of Rs.50.00 crore is provided with at least 25% contributions of State Implementing Agency (SIA) and in case of North Eastern States, the central grant and minimum contribution of the SIA are up to 80% and 10% respectively. Under this scheme, 20 projects with central grant of Rs. 354.91 crore are under implementation, of which 5 projects have been completed. Central assistance of Rs. 329.58 crore(as on 23.12.2019) has been provided to 20 projects under MIIUS. MIIUS scheme was valid till 31.03.2017 and no new projects are being taken up under this scheme. In the year 2019-20, Rs. 11.12 crores (as on 23.12.2019) has been disbursed against Revised Estimate (RE) of Rs. 18.00 crore.

Industrial Corridors

Government of India is developing Industrial Corridors with the objective of fast-tracking growth and facilitates development of a well- planned and resource - efficient industrial base served by world-class sustainable connectivity infrastructure, bringing significant benefits in   terms of innovation, manufacturing, job creation and resource security to the nation. DMIC Project is the first Industrial Corridor which is being implemented in the country. For coordinated and unified development of industrial corridor projects, Government of India on 7th December 2016, approved expansion of the scope of existing DMIC Project Implementation Trust Fund (PITF) and re-designated it as National Industrial Corridor Development and Implementation Trust (NICDIT).

Presently, following 5 Industrial Corridors have been undertaken for development:

  1. Delhi Mumbai Industrial Corridor (DMIC);
  2. Chennai Bengaluru Industrial Corridor (CBIC) with extension to Kochi via Coimbatore;
  3. Amritsar Kolkata Industrial Corridor (AKIC);
  4. East Coast Economic Corridor(ECEC) with Vizag- Chennai Industrial Corridor (VCIC) Project as part of phase- I.
  5. Bengaluru Mumbai Industrial Corridor (BMIC).

The Delhi Mumbai Industrial Corridor (DMIC): This project was launched with the cooperation of Government of Japan. The project is being developed on either side, along the alignment of the 1,504 km long Western Dedicated Freight Corridor (WDFC) between Dadri (UP) and Jawaharlal Nehru Port Trust (JNPT), Navi Mumbai, broadly aimed to develop futuristic industrial cities in India which can compete with the best manufacturing and investment destinations in the world and converging next generation technologies across different sectors thereby creating employment opportunities and economic growth leading to overall socio-economic development. The project covers six States namely Uttar Pradesh, Haryana, Madhya Pradesh, Rajasthan, Gujarat and Maharashtra.

National Industrial Corridor Development Corporation Ltd (NICDC) [earlier, Delhi Mumbai Industrial Corridor Development Corporation Ltd. (DMICDC)} was incorporated in January, 2008 for development, coordination and implementation of the project. The company has an equity stake of 26% by Government of Japan and remaining by Government of India and public financial institutions like HUDCO, llFCL, LIC. The project has been planned for implementation in phases. Perspective planning for the entire DMIC corridor has been completed. Subsequently master planning and preliminary engineering of the nodes/ cities identified as part of phase-I in the states of Gujarat, Maharashtra, Madhya Pradesh and Uttar Pradesh has also been completed.

The Delhi Mumbai Industrial Corridor (DMIC) Project has made considerable progress in the recent time as Node/City level/project Special Purpose Vehicles (SPVs) have been incorporated and land allotment process have been initiated at the following four locations where construction activities are nearing completion.

  1. Ahmedabad Dholera Special Investment Region in Gujarat (22.5 sq. kms activation area).
  2. Shendra-Bidkin Industrial Area in Maharashtra (18.55 sq. kms activation area).
  3. Integrated Industrial Township Project at Greater Noida in Uttar Pradesh (747.5 acres).
  4. Integrated Industrial Township Project 'Vikram Udyogpuri' near Ujjain in Madhya Pradesh (1100 acres).

Hon’ble Prime Minister has dedicated Shendra Industrial Area (under DMIC) to the Nation. 67 plots have been allotted in all the above four(4) nodes. Some of the prominent investors include HAIER (123.7 acres), HYOSUNG (100 acres), AMUL (12 acres) and TATA Chemicals (126 acres). Four major industries have already started production in Shendra.

Apart from the above city/node level projects, following standalone projects are also being implemented as part of phase-1 development of DMIC Project:

  1. Multi Modal Logistic Hubs at Dadri, Uttar Pradesh, Nangal Chaudhary, Distt.- Mahendragarh, Haryana and Sanand, Gujarat.
  2. Multi Modal Logistic Hubs at Sanand, Gujarat.
  3. Multi Modal Transport Hub (MMTH) at Boraki in Greater Noida.
  4. Dighi Port Industrial Area in Maharashtra.

Chennai Bengaluru Industrial Corridor (CBIC) Project: The Chennai Bengaluru Industrial Corridor proposes to address infrastructure bottlenecks through a holistic approach while benefiting from the inherent strengths and competitiveness of each of the CBIC states. The perspective plan has been completed for the overall CBIC region and three priority nodes have been identified for further development. These are Krishnapatnam (Andhra Pradesh), Ponneri (Tamil Nadu) and Tumakuru (Karnataka).

For Krishnapatnam node in Andhra Pradesh and Tumakuru node in Karnataka, the project SPVs have been incorporated between NICDIT and respective State Govt(s). Further, the detailed master planning and preliminary engineering for both the nodes have been finalized. Process for obtaining approval of Cabinet Committee on Economic Affairs (CCEA) in respect of Krishnapatnam and Tumakuru is under process.

Amritsar Kolkata Industrial Corridor (AKIC) Project: In order to give a boost to industrial development in the densely populated states of Northern and Eastern India, the Government has commenced project development activities on creating Amritsar Kolkata Industrial Corridor (AKIC). This is proposed to be structured around the Eastern Dedicated Freight Corridor (EDFC) as the backbone. The AKIC will cover seven states namely Punjab, Haryana, Uttar Pradesh, Uttarakhand, Bihar, Jharkhand and West Bengal.

The Perspective Plan for the overall AKIC region has been completed and seven Integrated Manufacturing Clusters (IMCs) sites, one in each AKIC State(s) namely: Gamhariya (Bihar), Rajpura-Patiala (Punjab), Saha (Haryana), Prag-Khurpia Farms (Uttarakhand), Bhaupur (Uttar Pradesh), Barhi (Jharkhand) and Raghunathpur (West Bengal) have been identified. Detailed master planning and preliminary engineering for IMC site in West Bengal is underway. Finalization of Shareholder’s Agreement (SHA) and State Support Agreement (SSA) for Raghunathpur with Government of West Bengal and the Land acquisition along with Shareholder’s Agreement (SHA) and State Support Agreement (SSA) for Prag-Khurpia Farms with Government of Uttarakhand is under process.

East Coast Economic Corridor (ECEC) with Vizag Chennai Industrial Corridor (VCIC) Project as part of phase-I: East Coast Economic Corridor (ECEC) is India's first coastal corridor with Visakhapatnam-Chennai Industrial Corridor (VCIC) as phase-1 of the project. VCIC is aligned with the Golden Quadrilateral and is poised to play a critical role in driving India's Act East Policy. For VCIC, Conceptual Development Plan (CDP) has been prepared by Asian Development Bank (ADB) and Visakhapatnam, Machilipatnam, Donakonda and Chittoor have been identified for development. Master planning of two prioritized nodes by the State i.e. Vishakhapatnam and Chittoor have been completed.

East Coast Economic Corridor (ECEC) with Vizag Chennai Industrial Corridor (VCIC) Project as part of phase-I: East Coast Economic Corridor (ECEC) is India's first coastal corridor with Visakhapatnam-Chennai Industrial Corridor (VCIC) as phase-1 of the project. VCIC is aligned with the Golden Quadrilateral and is poised to play a critical role in driving India's Act East Policy. For VCIC, Conceptual Development Plan (CDP) has been prepared by Asian Development Bank (ADB) and Visakhapatnam, Machilipatnam, Donakonda and Chittoor have been identified for development. Master planning of two prioritized nodes by the State i.e. Vishakhapatnam and Chittoor have been completed.

Bengaluru Mumbai Industrial Corridor (BMIC) Project: The Bengaluru Mumbai Industrial Corridor (BMIC) is envisioned to facilitate development of a well- planned and resource-efficient industrial base to the two states. Perspective Plan has been completed. Dharwad node in Karnataka has been identified as the priority node for further developments.

India International Convention & Expo Centre (IICC), Dwarka):

The Government of India has approved development of India International Convention and Expo Centre (IICC) in Sector-25, Dwarka, New Delhi & allied infrastructure in PPP and non-PPP Mode (including Exhibition & Convention spaces, arena, trunk-infrastructure, Metro/NHAI connectivity, hotels, office and retails spaces etc.) at an estimated cost of Rs.25,703 crore by the year 2025. The Government has further approved incorporation of a new Government company as a Special Purpose Vehicle (SPV) for the implementation and development of IICC, Dwarka project with 100% equity from Government through DPIIT. A Special Purpose Vehicle for development of the project i.e. India International Convention and Exhibition Centre Limited (IICC Ltd), a 100 % owned and controlled Company by Government of India represented through DPIIT has been incorporated on 19.12.2017.

Phase-1 of the project comprising trunk infrastructure along with Exhibition-cum Convention Centre will be implemented and planned to be commissioned by December 2019. These will be implemented as non-PPP component. EPC Contractor for Phase-I development and Operator for Exhibition and Convention Centre have been appointed. Phase-2 of the Project comprising of the remaining Exhibition Area will be implemented by 2025. The PPP components comprising hotels, retail and offices will be implemented by the PPP developers. Hon'ble Prime Minister laid the foundation stone of this project on September 20, 2018. The operator for Exhibition and Convention Centre has been appointed.

A MoU has been signed with Delhi Metro Rail Corporation (DMRC) for extension of Airport Express line to IICC Project. The construction work of metro connectivity by DMRC is in progress and Tunneling works under Exhibition Hall – 3 was completed by DMRC and handed over to L&T for further construction works. lDBI Capital Markets & Securities Limited has been appointed as Financial Advisor to assist IICC in raising loan for the project. LoA has been issued to SBI on 31st January 2019 for providing a term loan amounting to Rs. 2150.16 crore with the approval of Board of IICC. National Council for Cement & Building Material (NCCBM) has been appointed as Third-Party Quality Assurance Agency (TPQA).

A MoU was signed with BSES Rajdhani Power Ltd (BRPL) for Bulk power supply to IICC Dwarka. Payment amounting to Rs. 40 Cr as first installment has been released on 15.01.2019 to BRPL for execution of this work. The work of feeder cable laying up to IICC plot by BSES and procurement of GIS substation has been completed. An amount of Rs. 92.39 crore has been transferred from IICC to NHAI for onward payment to DDA for transfer of 18.66 acres of land for external road connectivity to IICC being developed by NHAI. Further, an amount of Rs. 87.50 Cr has been paid to NHAI for this construction works. NHAI has awarded LoA to J. Kumar Infra projects Limited for Package-II of development of Dwarka Expressway (which includes road connectivity to IICC Complex). DDA has permitted IICC Ltd. to plant trees & maintain as Public Park in 34 Ha of land in the green belt adjoining IICC site (South Side).

Special Package for Industrial Development in Himalayan States - 2017 (IDS-2017)

Earlier Scheme (Special Package I&II): Department of Industrial Policy & Promotion (DIPP) had introduced various concessions for the UT of Jammu & Kashmir, UT of Laddakh, namely, J&K package-I from June, 2002 to 14th June, 2012 and J&K package-II, from 15th June, 2012 to 14th June, 2017 to boost up industrialization. For the States of Himachal Pradesh and Uttarakhand, various concessions were introduced by the DIPP for a period of ten year from 7.1.2003 to 6.1.2013. Thereafter revised scheme namely Package-II was effective from 07.03.2013 to 31.03.2017.,/p>

Current Scheme: Industrial Development Scheme (IDS) 2017 for UT of J&K, UT of Laddakh and States of Himachal Pradesh & Uttarakhand: To boost up industrialization in the Himalayan States, DPIIT have launched new Industrial Development Scheme (IDS) for UT of J&K, UT of Laddakh w.e.f. 15.06.2017 up to 31.03.2020 and IDS for Himachal Pradesh and Uttarakhand w.e.f. 01.04.2017 to 31.03.2022. For the UT of J&K and UT of Laddakh extension of scheme beyond 31.03.2020 will be considered after evaluation of the scheme. The Scheme includes the following incentives:

  1. Central Capital Investment Incentive for access to credit (CCIIAC)
  2. Central Comprehensive Insurance Incentive (CCII)
  3. >Central Interest Incentive (CII) (Only for J&K)

Additional Benefits for J& K: The Government of India has extended the following additional benefits for the State of J&K (now UT of J&K and UT of Laddakh). vide notification 2(2)/2018-SPS dated 01.01.2019 with effect from 15.06.2017.

  1. GST reimbursement
  2. Income Tax Reimbursement
  3. Transport incentive
  4. Employment Incentive

Progress made: The following progress has been made during 2019:

  1. An online portal developed for registration of new Industrial units under the Scheme.
  2. 499 (Union Territory of J&K-87, Union Territory of Laddakh- 3, HP- 256 and Uttarakhand-153) industrial units have already been registered by Empowered Committee.

Scheme of Budgetary Support to the eligible units located in the UT of J&K, UT of Laddkh, States of Uttarakhand, Himachal Pradesh and North Eastern States including Sikkim under GST Regime.

Pursuant to the decision of the Cabinet Committee on Economic Affairs to pay a financial support to the industrial units that are already availing excise duty exemptions Department for Promotion of Industry and Internal Trade (DPIIT) has notified a scheme of Budgetary Support to the eligible units located in the then State of Jammu & Kashmir (now UT of J&K and UT of Laddakh), States of Uttarakhand, Himachal Pradesh and North Eastern States including Sikkim under Goods and Service Tax Regime on 05.10.2017. It will remain in force from 01.07.2017 till 30.06.2027.

The Scheme is offered as a measure of goodwill to continue committed liability for the residual period out of a total of 10 years. Under this new Scheme, budgetary support to the extent of Central Government's share in the CGST collected from the industrial units is to be provided. Under the Scheme 2192 units have so far applied for registration. The Budget Estimate for F.Y. 2019-20 for the scheme is Rs. 1700/- crore. In the F.Y. 2019-20, DPIIT authorized CBIC Rs. 1700/- crore to refund to the industrial units. Till 24.01.2020, a sum of Rs. 1697.63 crore has been disbursed by CBIC to eligible registered units under the Scheme.

As per Scheme guidelines, one time inspection of units is to be conducted. To carry out this huge task, 95 teams have been formed by DPIIT comprising of representatives from sectoral Ministries, CGST authorities and State authorities.

National Plan for Manufacturing Clusters (NPMCs)

The Group of Secretaries on Commerce and Industry formed by the Government in September 2016 recommended that NITI Aayog may coordinate and develop a comprehensive National Plan for Manufacturing Clusters in collaboration with the respective Ministries and States.

The objective of the National Plan is to bring about convergence in the multiple models of development of industrial clusters by the Central Government and State Governments so as to affect better cost efficiency and optimal utilization of resources.

In accordance with the recommendations of the Groups of Secretaries, the DPIIT has developed Industrial Information (URL:www.ncog.gov.in/IIS), in coordination with National e-Governance Division, Ministry of Electronics & Information Technology (MeiTY) and Bhaskaracharya Institute for Space Applications and Geo-Informatics (BISAG) to assimilate information of industrial infrastructure across the country. The Beta Version of IIS was made open to public on 15th May 2017.

Information on the said portal has been entered and is periodically updated by Central Government, Ministries, Departments and State Governments. Industrial Information System (IIS) provides Geographic Information System (GIS) enabled database of industrial areas including clusters, parks, nodes, zones etc. across the country. The portal also serves as a Decision Support System for effective planning and industrial investment. A GIS layer regarding agricultural and horticultural raw material availability has also been added. The GIS mapping features help identify presence of industrial clusters like light engineering, heavy machinery manufacturing, automobile and allied parts manufacturing, textiles, food processing, electronics, etc.; their distances from key logistic points, incentive schemes offered to strengthen the existing framework.

Over the period, the IIS web portal has evolved and presently, nearly 3355 parks/clusters covering about 4.75 lakh hectare land have been mapped on the system. A series of video conferences were conducted in this regard for stakeholder consultations. Workshops and hands-on training sessions were organized by DPIIT in the respective States to facilitate smooth data entry and transfer of knowledge.

IIS is an open web portal that can benefit multiple stakeholders including various government stakeholders, industrial park developers, industries and investors by providing updated information regarding the land available in different industrial parks, their potential, their occupancy, incentives available therein. In other words, there will be complete transparency, accountability and system to put an end to the problem of information asymmetry.

Specific Industries Administered by DPIIT

The Department monitors industrial growth and production in general and in select industrial sectors such as leather, cement, paper and pulp, tyre and rubber, light electrical industries, consumer goods, consumer durables, light machine tools, light industrial machinery, light engineering industries etc. as indicated in the allocation of Business Rules, 1961.

Indian Footwear, Leather & Accessories Development Programme (IFLADP) is a Central Sector Scheme approved for implementation during 2017-18 to 2019-20 with total outlay of Rs. 2600/- crore. The scheme aims at development of infrastructure for the leather sector, address environment concerns specific to the leather sector, facilitate additional investments, employment generation and increase in production.

Investment Promotion and International Cooperation

The Department plays an active role in investment promotion and facilitation through dissemination of information on the investment climate and opportunities in India and by advising prospective investors about investment policies and procedures and opportunities. International Co-operation for industrial partnerships is solicited through both bilateral and multilateral arrangements. It also coordinates with apex industry associations like Federation of Indian Chambers of Commerce and Industry (FICCI). Confederation of Indian Industry (ClI), the Associated Chambers of Commerce and Industry (ASSOCHAM), etc; in their activities relating to promotion of industrial cooperation, both through bilateral and multilateral initiatives intended to stimulate the inflow of foreign direct investment into India.

Monitoring of Industrial Activity, Production and Prices

DPIIT monitors the performance of the industrial sector by collating information from Industrial Entrepreneurs' Memorandum (IEM), Industrial License, Letter of Intent (LOI), Foreign Investment data and Industrial production returns. The Department also compiles and prepares Index of production of 8 core infrastructure industries on a monthly basis. Besides, the Department publishes the monthly Wholesale Price Index (WPI) which forms the basis for official information on inflation.

National Medical Devices Promotion Council

The Medical Devices Industry (MDI) plays a critical role in the healthcare ecosystem and is indispensable to achieve the goal of health for all citizens of the country. A National Medical Devices Promotion Council has been setup in December, 2018. As Indian manufacturing companies and startups move towards creating innovative products, the setting-up of the Council will spur domestic manufacturing in this sector.

The Council is headed by Secretary, DPIIT. Apart from the concerned departments of Government of India, it will also have representatives from health care industry and quality control institutions. Andhra Pradesh MedTech Zone, Visakhapatnam, will provide technical support to the Council. The National Medical Devices Promotion Council will have the following objectives and activities:

  1. Act as a facilitating and promotion & developmental body for the Indian MDI.
  2. Hold periodic seminars, workshops and all related networking activities to garner views of the industry and understand best global practices in the sector and deliberate on various parameters for inclusion in the industrial and trade policies in medical devices.
  3. Identify redundant processes and render technical assistance to the agencies and departments concerned to simplify the approval processes involved in medical device industry promotion & development.
  4. Enable entry of emerging interventions and support certifications for manufacturers to reach levels of global trade norms and lead India to an export driven market in the sector.
  5. Support dissemination and documentation of international norms and standards for medical devices, by capturing the best practices in the global market and facilitate domestic manufacturers to rise to international level of understanding of regulatory and non-regulatory needs of the industry.
  6. Drive a robust and dynamic Preferential Market Access (PMA) policy, by identifying the strengths of the Indian manufacturers and discouraging unfair trade practices in imports; while ensuring pro-active monitoring of public procurement notices across India to ensure compliance with PMA guidelines of DPIIT and Department of Posts (DoP).
  7. Undertake validation of Limited Liability partnerships (LLPs) and other such entities within MDI sector, which add value to the industry strength in manufacturing to gain foot hold for new entrants.
  8. Make recommendations to government based on industry feedback and global practices on policy and process interventions to strengthen the medical technology sector, including trade interventions for related markets.

E-Commerce

Department for Promotion of Industry and Internal Trade (DPIIT) is responsible for matters related to E-Commerce, including formulation of e-commerce policy, conduct and follow the recommendations of the Standing Group of Secretaries (GoS) on e-commerce, stakeholder interactions, inter-departmental coordination on cross cutting aspects of e-commerce and analysis of discussion papers thereof. The draft National e-commerce Policy was placed in public domain on February, 23, 2019 for receiving stakeholder’s comments and so far about 120 comments have been received on the same.

This Department is also responsible for putting forward India’s position at International forums such as WTO, G20, India- Peru Trade Negotiations, Shanghai cooperation Organization (SCO) etc and was the negotiating lead for e-commerce at the Regional Comprehensive Economic Partnership (RCEP).

Internal Trade

The Department of Industrial Policy and Promotion was renamed as Department for Promotion of Industry and Internal Trade (DPIIT) in January, 2019 and designated as nodal department for Internal Trade as per Gazette Notification dated 27.01.2019, S.O. 503(E), Government of India (Allocation of Business ) Rules, 1961. Additional responsibilities for promotion of Internal Trade, including Retail and Welfare of Traders and their Employees, were assigned to DPIIT.

A National Traders’ Welfare Board (NTWB) has been constituted for the following objectives:-

  1. To identify policy measures to achieve the objective of welfare of traders and their employees.
  2. To suggest simplifications in the Acts and rules applicable to traders.
  3. To make recommendations to reduce the compliance burden of traders.
  4. To improve access to funds for traders.
  5. To make recommendations regarding social security benefits like insurance, pension, healthcare etc, for traders and their employees.
  6. To make recommendations to address any other problems and issues of traders and their employees.

Technical Regulation

For ensuring human safety, environment protection and availability of quality products to consumers, this Department is in the process of formulating Technical Regulations in respect of various items. Technical Regulations, inter-alia will also help in curbing import of substandard products in country. Technical Regulations are governed under BIS Act, 2016. During 2019, DPIIT has initiated 15 Quality Control Orders (QCOs) concerning 42 products; 4 QCO’s covering 10 products have been notified, in respect of LPG stove, transparent Float glass, plugs & sockets, meter, air conditioner etc. Remaining products like Safety glass, flat transparent sheet glass, cooker, cables, house-hold products, plain copier paper etc will be notified shortly.

Technical Regulations for New Products: Department of Commerce has given 58 new Tariff Lines for formulation of Technical Regulations. DPIIT has initiated action for the same.

Development Councils for promotion & Growth of Industries: Under Industrial (Development & Regulation Act, 1951, the Department has given the responsibility for setting up Development councils for Scheduled Industries to help provide a forum for discussion on Policy strategies and formulation. In keeping the above stated objective of the Department to guide the growth & development of industries, following Development Councils merit a mention:-

  1. Foundry Development Council: It was constituted for Foundry Industry in 2014 and re-notified in 2017 for a period of 2 years. It will be re-notified again.
  2. Bicycle Development Council: Bicycle Development Council has been notified on 15.11.2019.