Kiranmanonmani. Y
The Ministry of Commerce and Industry was established under the Government of India to boost, regulate, and monitor the trade of goods and services domestically and internationally, inducing economic growth by developing industries, collaborating with the world for trade partnerships, and fostering commercial relationships.
The ministry was originally two separate entities, which were merged into one by the then Prime Minister of India, Shri Atal Bihari Vajpayee, on October 13, 1999. The ministry comprises two main departments: the Department of Commerce and the Department for Promotion of Industry and Internal Trade. Currently, the Ministry is headed by Shri Piyush Goyal as the Union Minister of Commerce and Industry and Shri Jitin Prasada as the Minister of State. At present, the ministry has 8 divisions, namely,
- International Trade Policy Division
- Foreign trade territorial division
- Exports product division
- Economic division
- Administration and General Services Division
- Vigilance division
- Supply division
- Trade Promotion Division
Department Of Commerce
The Department of Commerce mainly focuses on formulating and signing bilateral and multilateral trade agreements with other economies and maintaining cordial relations with them. It also has the additional responsibility of creating Special Economic Zones across the nation by identifying potential landmarks, boosting exports by enhancing production and promotion, implementing rules and regulations for trade, and encouraging trade among states.
The Department’s long-term goal is to prepare India as a major player in world trade and assume a leadership role in international trade organizations commensurate with India’s growing importance. The medium-term goal is to achieve 2 trillion USD in exports of goods and services by 2027-28, with a long-term objective of doubling India’s share in global trade. It has implemented various policy tools and mechanisms to improve trade, focusing on a targeted commodity and country in the medium term and foreign trade in the long run.
The organizational structure of the Department is in a way with its secretary at its apex and a special secretary, a financial advisor, additional secretary/secretary rank officers, joint secretary/secretary level officers, and many other senior officers. The divisions under the Department of Commerce are the International Trade Policy Division, the Foreign Trade Territorial Division, the Export Product Division, the Economic Division, and the Administration and General Services Division.
The main function of the International Trade Policy Division is to regulate and deal with tariff and non-tariff barriers and develop communication with international trade agencies, such as United Nations Conference on Trade and Development(UNCTAD), European Economic Community(EEC), European Free Trade Association(EFTA), and World Trade Organization(WTO).
The Foreign Trade division manages imports and exports of all commodities, excluding films, setting up Agricultural Export Zones(AEZs), development, expansion of export production, and regulation of foreign trade concerning all commodities and products (excluding jute products and handicrafts). It deals with matters related to the Export Promotion Board, Board of Trade, International Trade Advisory Committee, Export Promotion Organizations, and so on. The State Trading Committee deals with the policies of organizations established to serve the purpose of inter-state exchange of commodities, production, distribution, and exports of cash crops such as tea, coffee, rubber, tobacco, and spices, and their promotion; it takes decisions related to the establishment, development, operation, and maintenance of Special Economic Zones across the country.
Department Of Promotion Of Industry And Internal Trade (DPIIT)
The Department of Promotion of Industry and Internal Trade is one of the two departments of the Ministry. It was established in 1995 as the Department of Industrial Policy and Promotion and was later renamed DPIIT in 2019. DPIIT works closely with trade organizations such as the United Nations Industrial Development Organization(UNIDO), the Federation of Indian Chamber of Commerce and Industry, and the Internet and Mobile Association of India(IMAI) in matters related to FDI and Industrial development. The department is responsible for determining Industrial Policy at the Central Government level, including the following:
- General Industrial Policy
- Administration of Industries (Development and Regulation) Act, 1951, grant of Industrial Licenses (IL) and acknowledging Industrial Entrepreneurs Memorandum (IEM)
- Industrial management
- Productivity in industry
- Matters related to e-Commerce
- Promotion of Internal Trade, Including Retail Trade.
- Welfare of Traders and employees.
- Matters relating to Facilitating “Ease of Doing Business”
- Matters related to Start-Ups
- Integrated development of the logistics sector
The Department also handles matters related to the Protection of Intellectual Property Rights (IPR). It administers acts related to IPRs, promotion of Foreign Direct Investment(FDI) into the country by overseas citizens and foreigners in the innovation sector, and the Special Economic Zones of the country. The Department plays an important role in the liberalization and rationalization of FDI policy and turns India into an attractive destination for investment.. It has introduced a 100% FDI policy for most industries, except for some strategically important sectors, with full flexibility, ease of investment, and simple procedures.
DPIIT has played an inevitable role in making schemes such as Make in India and Startup India successful through Invest India by acting as a facilitator to companies and stakeholders from India and abroad, alongside the Government of India, Private Companies, and Indian Embassies abroad. The One District One Product(ODOP) scheme recognizes indigenous products from every district of India.
The idea is to select, brand, and promote One Product from each District (One District – One Product) of the country to enable holistic socioeconomic growth across all regions. DPIIT also works as a major player in approving industrial corridors across India alongside the National Industrial Corridor Development Programme to provide better infrastructure to industries at strategic locations and to help them compete with global investment and manufacturing destinations.
Make In India Scheme:
The Department of Promotion of Industry and Internal Trade has been the main player in the implementation of the Make in India Scheme launched in 2014 by the Government of India intending to transform India as a ‘Global Manufacturing Hub’ by developing a new infrastructure consisting of a helpdesk and a mobile website with a simple interface consisting of all necessary facts and figures, policies, initiatives and contact details of sector-specific nodal officers.
Conclusion
The Ministry of Commerce and Industry of the Government of India works relentlessly to boost the trade and commerce of the nation by incentivizing manufacturers and producers to increase the production, supply, and export of indigenous goods across the country and the world by developing infrastructure, providing subsidies and loans, working with various international and intranational organizations, and signing trade agreements. Schemes such as Make in India, Skill India, and Invest India have contributed immensely towards making India a global manufacturing hub and attracting potential domestic and foreign investors to invest in Indian industries.
References
About the Contributor: Kiranmanonmani. Y is an Economics Hons student at Hansraj College, University of Delhi, and a research intern at Impact and Policy Research Institute (IMPRI)
Acknowledgement: The author would like to express sincere gratitude to Ms. Aasthaba Jadeja and the IMPRI team for their guidance throughout the writing of this article.
Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.
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