Department for Promotion of Industry and Internal Trade (DPIIT)

About 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

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.

Role and Functions of DPIIT

From the regulation and administration of the industrial sector, the role of the Department has been transformed into facilitating investment and technology flows and monitoring industrial development in the liberalized environment.

Programmes and Schemes of DPIIT

The below points mentions the programmes and schemes run under DPIIT:

1. Himalayan and North Eastern States

Transport Subsidy Scheme

Government of India had introduced Transport Subsidy Scheme (TSS) on 23.7.1971 to develop industrialization in the remote, hilly and inaccessible areas. The scheme was applicable to all industrial units (barring plantations, refineries and power generating units both in public and private sectors irrespective of their size).Under the scheme, subsidy on the transport cost for transportation of raw material and finished goods to and from the location of the unit and the designated rail-head was reimbursed for a period of 5 years from the date of commencement of commercial production.

The Scheme has been discontinued with effect from 22.11.2016. 

However, industrial units registered under the scheme prior to the date of issue of DIPP’s notification dated 22.11.2016 will be eligible for the benefits of the residual period under the scheme.

North East Industrial and Investment Promotion Policy (NEIIP), 2007.

To promote industrialization in the States of North Eastern Region leading to overall growth of the region, the Government announced a package of fiscal incentives, namely the North East Industrial and Investment Promotion Policy (NEIIPP), 2007, for a period of 10 years.

The government has revised the North East Industrial and Investment Promotion Policy (NEIIP), 2007.

Government has decided that henceforth subsidies payable to all industrial units will be disbursed through Direct Benefit Transfer (DBT) mechanism by the Chief Controller of Accounts (Industry) for which the units would need to get themselves registered on the e-payment portal by providing required bank details.

All industrial units which commence production on or after 1, December 2014 and on or before 31, March 2017 as well as existing units which go in for substantial expansion and commence commercial production on or before March next year will be eligible for incentives as per the revised norms of subsidy.

The subsidy for the new industrial units/existing industrial units going for substantial expansion will be limited to Rs 5 crore per industrial unit operating in manufacturing sector and Rs 3 crore per industrial unit operating in services sector

While the limit for automatic approval of subsidy at the rate of 30 per cent of the investment in plant and machinery will continue to be upto Rs 1.5 crore per unit; for grant of capital investment subsidy higher than Rs 1.5 crore and upto a maximum of Rs 5 crore, there will be an empowered committee.

Salient features of this policy were:

Central Capital Investment Subsidy @ 30% of investment in Plant and Machinery,

Central Interest Subsidy @ 3% of working capital loan availed for a period of 10 years from the date of commencement of commercial production (DOCP).

reimbursement of insurance premium paid towards insurance of fixed capital assets for a period of 10 years from DOCP

Excise Duty exemptions for a period of 10 years from DOCP and

Income Tax exemption for a period of 10 years from DOCP.

Units have been set up both in the Manufacturing Sector and Services Sector, covering various fields such as Pharmaceuticals, Steel and Rolling Mill, Cement, FMCG, Packaging, Poultry Feed, Ferro-alloy, Bakery, Hotels, Hospitals, Power Generation, etc.

To give a further boost to internal trade, the Government has implemented the scheme, namely, Assistance to States for Developing Export Infrastructure (ASIDE), under which special emphasis is given to development of infrastructure in the NER States.

This Scheme has been devolved to States in the current financial year.

Apart from this, an Export Development Fund (EDF) has also been set up with the objective of promoting exports from the region.

Efforts have also been initiated to mainstream the States, including NE States, for boosting exports

Central Sector Scheme for Industrial Development of Jammu and Kashmir

Industrial Development Scheme (IDS),2017

• The financial outlay of the proposed scheme is Rs.28400 crore for the scheme period 2020-21 to 2036-37.
• Scheme while encouraging new investment, also nurtures the existing industries in J&K by providing them working capital support at the rate of 5% for 5 years.
• Main purpose of the scheme is to generate employment which directly leads to the socio economic development of the region.
• It aims at development of Manufacturing as well as Service Sector Units in J&K.
• Scheme is made attractive for both smaller and larger units.
• It attempts for a more sustained and balanced industrial growth in the entire UT.
• Scheme has been simplified on the lines of ease of doing business by bringing one major incentive- GST Linked Incentive- that will ensure less compliance burden without compromising on transparency.
• It is not a reimbursement or refund of GST but gross GST is used to measure eligibility for industrial incentive to offset the disadvantages that the UT of J&K face.

2. Intellectual Property Rights (IPR)

Modernisation and Strengthening of Intellectual Property Office (MSIPO)

• The Plan Scheme for MSIPO was first implemented by the Government in the 11th Five Year Plan (March, 2008) and continued in the 12th Five Year Plan.
  • The objective of the scheme is to strengthen the capabilities of the Intellectual Property Offices in India; to develop a vibrant Intellectual Property regime in the country; and also to develop modern infrastructure for the Indian Patent Offices to function as an International Search Authority and International Preliminary Examining Authority in order to meet the requirements for international registration of Trade Marks.
  • During the 12th Plan the focus of the scheme was on infrastructure development, augmentation of human resources, enhancement in quality of service, computerisation and improvement in IT infrastructure. Training of personnel and outreach activities were the other objectives.
  • The implementing agency in respect of the Scheme has been identified as the office of the Controller General of Patents, Designs and Trademarks (CGPDTM).

Scheme for Strengthening of Intellectual Property Appellate Board (IPAB)

Intellectual Property Appellate Board, a statutory body under DIPP established under the provisions of the Trade Marks Act on 15^th September, 2003 in Chennai to hear appeals against the decisions of the Registrar of Trade Marks and Geographical Indications and Controller of Patents. A strong IPR regime could also influence the inflows of FDI, technology transfers and trade that may have a bearing on the growth of country. Hence, a strengthened IPAB will certainly directly contribute to the growth of a stronger IPR regime and indirectly in the growth of economic development. Since its establishment in 2003, work has increased manifold.

Draft Model Guidelines on Implementation of IPR Policy for Academic Institutions

SIPP

The “Scheme for Facilitating Startups Intellectual Property Protection (SIPP)” was launched in 2016 to encourage and facilitate IPR protection by Startups and the same has been extended up to March 2023. The Scheme is implemented by the office of CGPDTM and provides facilitators to start ups for filing and processing of their applications for patents, designs and trademarks. Professional charges of the facilitators are reimbursed by the office of CGPDTM as per provisions under SIPP scheme.

Scheme for Pedagogy and Research in IPRs for Holistic Education and Academia (SPRIHA)

IP Nani

The first IP Mascot – ‘IP Nani’ was created in collaboration with the European Union Intellectual Property Office (EUIPO). A series of interactive videos of IP Nani along with her sidekick (and grandson) ‘Chotu’ was created and released. These videos have received a lot of appreciation and are regularly used for CIPAM’s IP Awareness initiatives. In this regard, a project was worked on in collaboration with INTA and IP specific comics were created based on IP Nani as well as additional characters like Bunty, Minti, Chutki, etc.

Industrial Promotion

Make in India

• ​Department for Promotion of Industry and Internal Trade (DPIIT) is entrusted with the task of formulation of Foreign Direct Investment (FDI) policy, monitoring of Ease of Doing Business reforms and Investment Promotion and Facilitation activities. Investment Promotion is being carried out as an activity.
  • Investment promotion is a multidimensional and complex process which requires continuous efforts to be channelized around Ease of Doing Business, FDI reforms, skill development, infrastructure creation and fiscal incentives. All these activities have been brought into focus after launch of Make in India initiative by the Government in September, 2014 to make India the most preferred investment destination. The Government has put in place a comprehensive FDI policy regime by bringing more activities under the automatic route, increasing sectoral caps and easing conditionalties. In addition to this, a number of measures have been undertaken to ease the business environment of the country. Various State and Central Government services are being integrated on a single window e-biz portal.

4. Infrastructure

Industrial Corridors

Delhi Mumbai Industrial Corridor (DMIC) project was approved by Union Cabinet of India in 2007. Later, the institutional and financial structure of the project was approved by the Government of India are the Scheme was launched in September, 2011. Further, NICDIT(National Industrial Corridor Development and Implementation Trust) under this Department was approved on 07/12/2016 for the expansion of the scope of existing DMIC-Project

Modified Industrial Infrastructure Upgradation Scheme (MIIUS)

Industrial Infrastructure Upgradation Scheme (IIUS) was launched in 2003.

The objective of Scheme is top enhance industrial competitiveness of domestic industry by providing quality infrastructure through public private partnership in selected functional clusters/locations which have potential to become globally competitive.

o   The Scheme was recast in February, 2009 on the basis of an independent evaluation to strengthen the implementation process.

o   A modified version of IIUS viz. ‘Modified Industrial Infrastructure Upgradation Scheme (MIIUS)’ was notified in July 2013. Under MIIUS, projects have been undertaken to upgrade infrastructure in existing Industrial Parks/ Estates/ Areas.

o   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.

o   Central Grant upto 50% of the project cost with a ceiling of Rs.50.00 crore is provided under MIIUS with at least 25% contributions of State Implementing Agency and in case of North Eastern States, the central grant and minimum contribution of the SIA are up to 80% and 10% respectively. A two stage approval mechanism has been retained in the Scheme.

India International Convention & Expo Centre (lICC, Dwarka)

o   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 at an estimated cost of Rs.25,703 crore by the year 2025.

o   Development of Exhibition & Convention space, arena, trunk infrastructure, Metro/NHAI connectivity, hotels, office and retail space etc. are visualised in the project.

o   For development of this project, a Special Purpose Vehicle (SPV) i.e. India International Convention and Exhibition Centre Limited (lICC Ltd), a 100 % owned and controlled Company by Government of India represented through

o   Department for Promotion of Industry and Internal Trade (DPIIT) has been incorporated on 19th December, 2017.

o   Development of the project is visualised in two phases. In Phase-1, trunk infrastructure along with Exhibition-cum-Convention Centre is likely to be operational by July 2021.

o   This phase is being implemented as non-PPP component. The remaining Exhibition Area such as hotels, retail and others to be developed by PPP developers in Phase – II and would be completed by 2025.

5.    Indian Footwear Leather and Accessories Development Programme

The Central Government has approved the special package for employement generation in leather and foothwear sector. The package involves implentatgion of Central Sector Scheme “Indian Footwear, Leather & Accessories Development Programme” with an approved expenditure of Rs. 2600 Crore over the three financial years from 2017-18 to 2019-20.The scheme would lead to development of infrastructure for the leather sector, adressenvironment concerns specific to the leather sector, facilitate additional investments,scale investment in the sector in production. Enhanced Tax incentive would attract largewill support economies of scale.

6.    Production Linked Incentive Scheme (PLI) for White Goods

7.    Project Monitoring Group (PMG)

• The Project Monitoring Group (PMG) is an institutional mechanism for the expedited resolution of issues and regulatory bottlenecks in projects with investments upwards Rs. 500 Crores in India. It was set up as a special cell in the Cabinet Secretariat, Government of India in 2013 and was subsequently brought under the administrative control of the Prime Minister’s Office (PMO) in 2015. With effect from 14th February, 2019, PMG has been merged with the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry. This relocation was enabled in order to create a one-stop facilitation destination for investors at all stages of the investment process, including issue resolution.
• The PMG seeks to enlist the unresolved project issues in respect of all mid and large sized Public, Private and ‘Public–Private Partnership’ (PPP) Projects and takes up fast-tracking of approvals, sectoral policy issues and removal of bottlenecks in expeditious commissioning. DPIIT is mandated as the nodal body for the review of public and private projects facing challenges and facilitates their resolution through PMG.
• There are several projects from key sectors for which the PMG undertakes issue resolution. The projects are largely from the infrastructural nature, however PMG accepts projects from all sectors, as long as they meet the threshold requirement. These projects typically emanate from sectors such as:

• Road Transport & Highways, Railways, Civil Aviation
• Inland Waterways, Ports and Shipping
• Chemicals, Fertilizers and Petrochemicals
• Power
• Coal and Mines
• Urban Development
• Health and Family Welfare
• Textiles
• Tourism
• Telecommunication and IT Services

8.    Startup India Initiative

• The Startup India initiative was announced by Hon’ble Prime Minister of India on 15th August, 2015.
• The flagship initiative aims to build a strong eco-system for nurturing innovation and Startups in the country that will drive sustainable economic growth and generate large scale employment opportunities. Further to this, an Action Plan for Startup India was unveiled by Prime Minister of India on 16th January, 2016.
• The Action Plan comprises of 19 action items spanning across areas such as “Simplification and handholding”, “Funding support and incentives” and “Industry-academia partnership and incubation”.
• Government of India has made fast paced efforts towards making the vision of Startup India initiative a reality. Substantial progress has been made under the Startup India initiative, which has stirred entrepreneurial spirit across the country.
• The Department for Promotion of Industry and Internal Trade (DPIIT) is mandated to coordinate implementation of Startup India initiative with other Government Departments.
• Apart from DPIIT, the initiatives under Startup India are driven primarily by five Government Departments viz. Department of Science and Technology (DST), Department of Bio-technology (DBT), Ministry of Human Resource Development (MHRD), Ministry of Labour and Employment and Ministry of Corporate Affairs(MCA) and NITI Aayog.
• Others 

Project Based Support to Autonomous Institutions-National Productivity Council

o The National Productivity Council (NPC) is supported by DPIIT under Project Based Support to carry out activities under various projects as proposed by them during each financial year. NPC under this scheme has carried out activities in various fields like Industry 4.0, Quality Management, Productivity Promotion etc.

Project Based Support to Autonomous Institutions-National Institutes of Design (NIDs)

The National Institute of Design (NID) is internationally acclaimed as one of the foremost multi-disciplinary institutions in the field of design education and research.

Based on the recommendations made in the ‘India Report’ in 1958, the first National Institute of Design was established at Ahmedabad in the State of Gujarat in September 1961 by the Government of India with the assistance of the Ford Foundation and the Sarabhai family of Ahmedabad.

Subsequently, its Gandhinagar Campus and Bengaluru Campus were set-up in 2005 and 2007 respectively for post graduatecourses.

In 2007, the Department for Promotion of Industry and Internal Trade (erstwhile Departmentof Industrial Policy and Promotion) envisioned the National Design Policy aimed at creating a design-enabled innovation economy and strengthening design education in the country.

The National Design Policy had recommended setting up design institutes on the lines of NID, Ahmedabad in various parts of India to promote design programmes. Under this Action Plan, 4 new NIDs have been set up in the States of Andhra Pradesh (Amaravati), Assam (Jorhat), Madhya Pradesh (Bhopal) and Haryana(Kurukshetra).

These institutes function as an autonomous body under DPIIT, Ministry of Commerce & Industry, Government ofIndia.

NID, Ahmedabad has been declared ‘Institution of National Importance (INI)’ by an Act of Parliament- the National Institute of Design Act 2014. Accordingly, NID, Ahmedabad became eligible to offer Bachelor Degree in Design (B. Des.), Master Degree in Design (M. Des.) as well as PhD Degree inDesign.

NID has been a pioneer in design education and is known for its pursuit of design excellence to make Designed in India, Made for the World a reality. NID’s graduates have made a mark in key sectors of commerce, industry and social development by taking role of catalysts and through thought leadership.

Productivity & Quality Improvement in Cement & Construction Sector

o Keeping in view of the recommendation of Department Related Parliamentary Standing Committee on cement industry, the thrust areas mentioned in the Working Group on cement industry for 12^th plan, a total of 09 projects (02 ongoing from 12^th Plan and 07 new) are proposed by NCCBM for 12^th plan 2012-17.

o These projects are in the area of cogeneration of power using waste heat in cement manufacture, development of fly ash based geopolymeric cements, investigation on nano particles blended cements, development of composite cements based on OPC, Service life design for concrete structure and design parameters for high strength concrete and three infrastructure development projects.

o The proposed projects will not only enhance the technical capability of NCCBM but also fulfill the objective of the scheme by providing front line research for cement and construction sector and creating state of art equipment and infrastructure facilities at various units of NCCBM. All the new projects have commenced from 1^st April 2013.