Department For Promotion Of Industry And Internal Trade (DPIIT)

Policy Update
Tulsi Kumari

Introduction

The Department for Promotion of Industry and Internal Trade (DPIIT) works under the Ministry of Commerce and Industry, Government of India. It is the main body which is responsible for making and carrying out policies related to industrial growth, investment, trade within India, logistics and intellectual property rights. It was first set up as the Department of Industrial Policy and Promotion (DIPP) in 1995. It was renamed DPIIT in January 2019 to reflect its wider role over domestic trade. (DPIIT, 2019).

DPIIT’s work covers five main areas. These areas include attracting investment and FDI; promoting manufacturing through Make in India and the PLI Scheme; building the startup ecosystem through Startup India; improving logistics through the National Logistics Policy and PM GatiShakti and; strengthening intellectual property rights. (PIB Year End Review, 2025)

Some of the key programmes run by DPIIT include the Production Linked Incentive (PLI) Scheme, Startup India, PM GatiShakti National Master Plan, National Logistics Policy 2022, Business Reform Action Plan (BRAP), National Single Window System (NSWS), One District One Product (ODOP), and the Open Network for Digital Commerce (ONDC). (PIB Year End Review, 2024)

Functioning

Investment & FDI Facilitation

DPIIT is responsible for India’s Consolidated FDI Policy. This policy is updated regularly under the Foreign Exchange Management Act (FEMA), 1999. In most sectors, foreign investors can bring in 100% FDI through the automatic route. This means they do not need prior government approval. The Foreign Investment Facilitation Portal (FIFP) handles cases where the approval of the government is needed. Invest India, which works under DPIIT, was expanded in 2024 with new offices in Singapore, Dubai, Zurich, and Saudi Arabia to attract global investors. The India Investment Grid (IIG) listed 15,580 projects worth USD 2,388.93 billion as of February 2024 (DPIIT FDI Fact Sheet, July 2025).

Manufacturing & PLI Scheme

Make in India scheme was launched on 25 September, 2014 to promote domestic manufacturing. It now covers 27 sectors in its second phase. The Production Linked Incentive (PLI) Scheme was approved by the Cabinet on 11 November 2020. It covers 14 sectors and has a total outlay of ₹1.97 lakh crore. Companies get financial incentives based on how much they produce above a set base level. DPIIT directly manages 15 of the 27 Make in India sectors( DPIIT Annual Report, 2024-25).

Startup Ecosystem

Startup India Scheme was launched on 16 January, 2016 to build a strong startup culture in the country. DPIIT manages three financial support tools under this programme. These include the Fund of Funds for Startups (FFS), which has a corpus amount of ₹10,000 crore; the Startup India Seed Fund Scheme (SISFS)  with a corpus of ₹945 crore; and the Credit Guarantee Scheme for Startups (CGSS) which became operational in April 2023. Startups are formally recognised under a government notification (GSR 127(E)) (Startup India Portal, 2025).

Logistics & PM GatiShakti

The National Logistics Policy (NLP) was released in 2022. Its aim is to cut India’s logistics cost from 13 to 14% of GDP to below 9% by 2030. It also targets a top-25 ranking in the World Bank Logistics Performance Index (LPI). The Comprehensive Logistics Action Plan (CLAP) puts NLP into action across six areas.

 PM GatiShakti National Master Plan was launched on 13 October 2021. It is a digital platform that integrates data from over 1,500 layers covering various roads, railways, ports and utilities. This helps all ministries plan infrastructure together and avoid overlaps. LEADS (Logistics Ease Across Different States) is now in its 6th edition. It was released in 2024 and ranks states on their logistics performance across four pillars. (DPIIT LEADS Report, 2024)

IPR & Innovation

DPIIT manages the National IPR Policy, which was announced in 2016. It coordinates India’s performance across the nine pillars of the Global Innovation Index (GII). To spread awareness, DPIIT has set up IPR Awareness Chairs in 27 universities. It has conducted over 1,200 awareness programmes reaching 5 lakh students and 359 sensitisation programmes for law enforcement agencies. In 2024, India ranked 4th globally in trademark filings and 7th in design filings. (PIB Year End Review, 2025)

Ease of Doing Business

DPIIT leads the Business Reform Action Plan (BRAP). Seven editions of BRAP have been implemented since 2015. BRAP 2026 was launched on 11 November 2025 with 438 reform actions across 15 business life-cycle areas. The Jan Vishwas Act, 2023, removed criminal penalties for 183 minor violations across 42 central laws. The National Single Window System (NSWS) now brings together 277 central and 2,977 state-level approvals on a single platform. It had received 7.1 lakh applications as of October 2024. (PIB Year End Review, 2024)

Performance of the Department (2022–2025)

FDI Performance

India’s total FDI has grown significantly over the last decade. It was USD 36.05 billion in FY 2013-14. By FY 2024-25, it reached USD 81.04 billion (provisional). This is a growth of over 124% in about ten years (PIB, 2025). Also, cumulative FDI inflows crossed USD 1 trillion between April 2000 and June 2025.  In FY 2024-25, Maharashtra received 39% of all FDI equity. Karnataka got 13% and Delhi received 12%. The top investing countries were Singapore (30%), Mauritius (17%), and the USA (11%). More than 98% of all FDI came through the automatic route. (DPIIT FDI Fact Sheet, July 2025).

 Source: Press Release:Press Information Bureau

  PLI Scheme Performance

The PLI Scheme has shown strong results across 14 sectors. Total production and sales under the scheme reached ₹12.50 lakh crore as of December 2024. Exports generated through PLI-supported industries were worth ₹4 lakh crore. The scheme created 9.5 lakh direct and indirect jobs. However, incentives actually disbursed to companies stood at only ₹9,721 crore till FY 2023-24, against a total outlay of ₹1.97 lakh crore. This gap points to challenges in meeting compliance benchmarks. (PIB Year End Review, December 2024).

Source: Press Release:Press Information Bureau

Startup India Performance

India now has the 3rd largest startup ecosystem in the world. As of November 2025, DPIIT had recognised 2,01,335 startups. These startups have collectively created more than 21 lakh jobs. Around 48% of recognised startups have at least one woman director. About 50% are based in Tier 2 and Tier 3 cities. This shows that the programme is reaching smaller towns and more women entrepreneurs. (PIB Press Release, November 2025).

Source: Press Release:Press Information Bureau

 IPR & Innovation Performance

India’s Global Innovation Index (GII) rank improved from 81st in 2015 to 39th in 2024. This is a jump of 42 positions in under a decade. In FY 2023-24, India granted 1,03,057 patents. This was the first time India crossed the 1 lakh mark in a single year. (PIB Year End Review, 2025) Domestic patent filings grew by 425%, from 12,040 in 2014 to 63,217 in 2024. India filed 5.5 lakh trademark applications in 2024, ranking 4th in the world. (PIB Year End Review, 2025).

Source: Press Release:Press Information Bureau

 Logistics: LEADS 2024 & NLP

In LEADS 2024, 13 States or Union Territories were classified as ‘Achievers’. This is the highest-performing category in the index. A new pillar on Sustainable Logistics was also added in the 2024 edition. This reflects growing concern about green supply chains. As of 2024, 26 States/UTs have formally notified their own State Logistics Policies. India’s LPI rank from the World Bank improved to 38th in 2023, going up from 44th in 2018. India’s logistics market is estimated to grow from USD 435 billion in FY 2021-22 to USD 591 billion by FY 2026-27. (DPIIT LEADS Report, 2024).

ONDC, DPIIT’s open digital commerce network  has grown rapidly since its launch. It has processed over 326 million cumulative orders by October 2025. Monthly orders grew from near zero in 2022 to 12.8 million in September 2024. It now operates across 1,100+ cities with 7.01 lakh active sellers (PIB Year End Review, 2025).

Impact Assessment

DPIIT’s policies have had a clear impact on India’s manufacturing, investment climate, and innovation ecosystem. The PLI Scheme has driven production worth ₹12.50 lakh crore and exports worth ₹4 lakh crore. (PIB Year End Review, December 2024) This shows that the scheme is helping both domestic industry and India’s export performance. Sectors like electronics, pharmaceuticals, and textiles are seeing real structural change.

India’s position as an investment destination has improved. It is now the 3rd largest destination for greenfield projects in the world with 1,008 project announcements in 2023. Its rank in the World Competitiveness Index improved from 43rd in 2021 to 40th in 2024. (PIB Year End Review, 2025) These gains are linked to reforms like BRAP, NSWS, and the broader FDI liberalisation carried out by DPIIT.

Innovation output has also improved. India’s GII (Global Innovation Index) rank moved from 81st in 2015 to 39th in 2024.  Domestic patent filings have grown by 425% over the same period. India crossed 1 lakh patent grants in a single year in FY 2023-24. This shows that research and innovation activity is growing in the country. (PIB Year End Review, 2025).

Startup India has created a broad-based entrepreneurship ecosystem. It has a very broad economic outreach, which is evident from more than 21 lakhs jobs it has created. The fact that 48% of startups have women directors and about 50% are from smaller cities shows the programme is inclusive, not just limited to metros. (PIB Press Release, November 2025)

On logistics, India’s LPI rank improved to 38th in 2023. The PM GatiShakti NMP integrates data from over 1,500 infrastructure layers, thereby helping to coordinate planning across ministries. With 26 states notifying their logistics policies, the NLP framework is beginning to take hold at the state level. (DPIIT LEADS Report, 2024)

On logistics, India’s LPI rank improved to 38th in 2023. The PM GatiShakti NMP integrates data from over 1,500 infrastructure layers, helping coordinate planning across ministries. With 26 states notifying their logistics policies, the NLP framework is beginning to take hold at the state level. (DPIIT LEADS Report, 2024)

ONDC is disrupting the digital commerce space. It processed 326 million+ cumulative orders by October 2025. (PIB Year End Review, 2025) It gives small sellers  including kiranas, artisans, and MSMEs  access to digital markets. This reduces their dependence on large private platforms. (PIB Year End Review, 2025)

Emerging Issues & Suggestions

Geographic Concentration of FDI

Maharashtra and Karnataka together received 51% of FDI equity in FY 2024-25. (DPIIT FDI Fact Sheet, July 2025) This concentration however leaves out many states, especially the landlocked and aspirational ones. Investment disparities across the country are not narrowing fast enough. DPIIT could strengthen incentive frameworks for underserved states. Dedicated Invest India desks for Tier 2 states could help redirect FDI to less developed regions.

PLI Incentive Disbursement Gap

Only ₹9,721 crore in incentives has been disbursed against a total PLI outlay of ₹1.97 lakh crore till FY 2023-24. (PIB Year End Review, December 2024) This is a very small fraction out of the total scheme. It suggests that many companies are not meeting the required production thresholds. A streamlined audit process and clearer compliance guidelines are therefore needed. Parliamentary oversight on sector-wise PLI utilisation would help improve the accountability.

High Logistics Cost

India’s logistics cost remains at 13 to 14% of GDP. (DPIIT LEADS Report, 2024) The global average however is around 8–9%. Despite NLP 2022 and PM GatiShakti, structural gaps in last-mile connectivity and multimodal transport persist. The 10 states that have not yet notified their logistics policies need to be brought on board urgently. Public-private partnerships for multimodal logistics hubs can help close this gap.

Startup Survival & Scale-up

Out of over 1,97,000 recognised startups, around 6,385 have reportedly closed down. (PIB Press Release, November 2025) The focus needs to shift from simply recognising startups to helping them grow and survive. A Startup Health Index, disaggregated by stage, sector, and location would help identify where support is most needed. The Credit Guarantee Scheme for Startups should also be expanded, with lower collateral requirements for early-stage ventures.

ONDC Monetisation & Consumer Trust

Despite processing 326 million+ cumulative orders by October 2025, many ONDC network participants are struggling to make profits. (PIB Year End Review, 2025) Consumer trust in open, non-branded networks is also lower than in established platforms. A clear grievance redressal system within the ONDC protocol is needed. A seller rating and certification system would also help build consumer confidence.

IPR Enforcement Gaps

India’s IPR filings have grown sharply but the enforcement remains weak. Anti-counterfeiting efforts across customs, police and online platforms are also fragmented. (PIB Year End Review, 2025) DPIIT should scale up sensitisation programmes for judges and enforcement officers. Dedicated IP Fast-Track Courts and AI-based tools for online takedowns would strengthen the system greatly.

Regulatory Fragmentation

NSWS has brought 277 central and 2,977 state-level approvals to just one platform. However, portals of many states still work in silos. Investors often face overlapping and confusing approval processes. BRAP 2026 should include an independent ‘single-window effectiveness score’, assessed by a third party, with time-bound corrective action plans for lagging states.

Way Forward

DPIIT has come a long way from being a regulatory body to an active promoter of industry and investment. India has now crossed USD 1 trillion in cumulative FDI and has become the world’s 3rd largest startup ecosystem. (PIB Press Release, November 2025) These are significant achievements. But for India to reach the goals of Viksit Bharat 2047, DPIIT must focus on deepening outcomes, not just expanding numbers.

On manufacturing, the PLI Scheme must move beyond incentivising production to building capabilities. R&D spending, domestic value addition, and integration into global value chains need to be prioritised. New-age sectors like semiconductors, green hydrogen and EV components are the next frontier. (PIB Year End Review, 2024; DPIIT Annual Report, 2024-25)

On investment, the gains from BRAP and NSWS should now reach smaller states and the underserved communities. The BRAP 2026 framework (PIB Year End Review, 2025) and emerging global indicators like the B-Ready Index should guide state-level reforms. Special attention is needed for women entrepreneurs and startups, especially in Tier 2 and Tier 3 cities. (PIB Press Release, November 2025)

On logistics, PM GatiShakti NMP must be scaled to district-level planning. ONDC must be made financially sustainable for network participants. (DPIIT LEADS Report, 2024; PIB Year End Review, 2025) A green logistics roadmap, aligned with India’s climate commitments, is also important to ensure that growth in logistics does not come at an environmental cost.

Across all areas, DPIIT must invest in better data systems, MIS dashboards, and independent programme evaluations. Parliamentary accountability for major schemes like PLI and Startup India must be strengthened to ensure public funds are used effectively. 

References

DPIIT. (2024). DPIIT official website. Department for Promotion of Industry and Internal Trade, Ministry of Commerce & Industry, Government of India. https://dpiit.gov.in

DPIIT. (2024b). Annual report 2024–25. Department for Promotion of Industry and Internal Trade, Ministry of Commerce & Industry, Government of India.

DPIIT. (2024c). Logistics ease across different states (LEADS) 2024 report. Press Information Bureau, Government of India. https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2090056

DPIIT. (2025). FDI fact sheet, July 2025. Department for Promotion of Industry and Internal Trade, Government of India.

IBEF. (2025). Foreign direct investment in India — Sector & state-wise analysis. India Brand Equity Foundation, Ministry of Commerce & Industry. https://www.ibef.org/economy/foreign-direct-investment

PIB. (2024a). Year end review 2024 — Ministry of Commerce & Industry (DPIIT). Press Information Bureau, Government of India. https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2086347

PIB. (2024b). India FDI reaches USD 1 trillion milestone. Press Information Bureau, Government of India. https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2083683

PIB. (2025a). Year end review 2025 — DPIIT. Press Information Bureau, Government of India. https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2201280

PIB. (2025b). India records USD 81.04 billion FDI in FY 2024–25. Press Information Bureau, Government of India. https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2131716

PIB. (2025c). India’s GII rank improves to 39th in 2024; patents cross 1 lakh in FY 2023–24. Press Information Bureau, Government of India. https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2201280

PIB. (2025d). BRAP 2026, Jan Vishwas Act & NSWS updates. Press Information Bureau, Government of India. https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2201280

PIB. (2025e). India adds 1,97,692 DPIIT-recognised startups; 3rd largest startup ecosystem. Press Information Bureau, Government of India. https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2197662

PIB. (2025f). ONDC reaches 326 million cumulative orders; 7.01 lakh active sellers. Press Information Bureau, Government of India. https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2201280

PM India. (2022). National logistics policy 2022. Prime Minister’s Office, Government of India. https://www.pmindia.gov.in

Startup India Portal. (2025). Startup India official portal. Ministry of Commerce & Industry, Government of India. https://www.startupindia.gov.in

About the Contributor

Tulsi Kumari is a Policy Research and Editorial Intern at IMPRI. She is currently pursuing a Master’s degree in Public Policy and Governance at TISS Hyderabad and holds a bachelor’s degree in Political Science. Her research interests include institutions, public economics, development economics, and gender studies.

Acknowledgment

The author extends sincere gratitude to the IMPRI team for their expert guidance and constructive feedback throughout the process.

Disclaimer

All views expressed in the article belong solely to the author and not necessarily to the organisation.

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