DIPP rechristened to include internal trade

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Why in news?

  • The government has notified changing the name of the Department of Industrial Policy & Promotion (DIPP) to the Department for Promotion of Industry and Internal Trade, and has enhanced its role.


  • In addition to the previous responsibilities of the erstwhile DIPP relating to general industrial policy, administration of the Industries (Development and Regulation) Act, 1951, industrial management, productivity in industry, and matters related to e- commerce.
  • The notification has also included four new categories of responsibilities the renamed body will be in charge of, including:
  • Promotion of internal trade (including retail trade)
    Welfare of traders and their employees
    Matters relating to facilitating Ease of Doing Business
    Matters relating to start-ups


  • DIPP was established in the year 1995, and was reconstituted in the year 2000 with the merger of Department of Industrial Development.
  • The department functions under the Ministry of Commerce and Industry.
  • 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, DIPP is responsible for the overall industrial policy.
  • It is also responsible for facilitating and increasing the foreign direct investment (FDI) flows to the country.
  • It is currently working to frame a new industrial policy, to be the third such policy in India since its independence in 1947.
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