The Role of the Department of Industrial Policy & Promotion

February 26, 2016 Posted by India Briefing 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.

RELATED: Pre-Investment and Entry Strategy Advisory by Dezan Shira & Associates

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.

RELATED: India Looks East for New Trade, Manufacturing Opportunities

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.

About Us

Asia Briefing Ltd. is a subsidiary of Dezan Shira & Associates. Dezan Shira is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN. For further information, please email india@dezshira.com or visit www.dezshira.com.

Stay up to date with the latest business and investment trends in Asia by subscribing to our complimentary update service featuring news, commentary and regulatory insight.

Managing Your Accounting and Bookkeeping in India
In this issue of India Briefing Magazine, we spotlight three issues that financial management teams for India should monitor. Firstly, we examine the new Indian Accounting Standards (Ind-AS) system, which is expected to be a boon for foreign companies in India. We then highlight common filing dates for most companies with operations in India, and lastly examine procedures and regulations for remitting profits from India

Using India’s Free Trade & Double Tax Agreements
In this issue of India Briefing magazine, we take a look at the bilateral and multilateral trade agreements that India currently has in place and highlight the deals that are still in negotiation. We analyze the country’s double tax agreements, and conclude by discussing how foreign businesses can establish a presence in Singapore to access both the Indian and ASEAN markets.

Passage to India: Selling to India’s Consumer Market In this issue of India Briefing magazine, we outline the fundamentals of India’s import policies and procedures, as well as provide an introduction to engaging in direct and indirect export, acquiring an Indian company, selling to the government and establishing a local presence in the form of a liaison office, branch office, or wholly owned subsidiary. We conclude by taking a closer look at the strategic potential of joint ventures and the advantages they can provide companies at all stages of market entry and expansion.