The Department for Promotion of Industry and Internal Trade (DPIIT) is a central government department under the Ministry of Commerce and Industry, responsible for formulating and implementing promotional and developmental measures for the industrial sector and internal trade in India. The department was originally established in 1995 and was reconstituted in 2000 with the merger of the Department of Industrial Development. Its creation was aimed at serving as a strategic unit to promote industrial development and create a conducive environment for businesses.
The department was formerly known as the Department of Industrial Policy & Promotion (DIPP) and was renamed to DPIIT in January 2019 after the mandate for matters related to internal trade, welfare of traders, and startups was added to its portfolio. This change solved the problem of a fragmented approach by integrating the promotion of industry and domestic trade under a single nodal body.
DPIIT works by formulating the overall industrial policy, promoting Foreign Direct Investment (FDI), and enhancing the Ease of Doing Business in India. It is the nodal department for the Startup India initiative, which provides recognition to eligible entities, granting them access to benefits like tax exemptions under Section 80 IAC of the Income Tax Act and fast-track patent examination. DPIIT also administers the regulatory framework for FDI, which is enforced through rules notified under the Foreign Exchange Management Act, 1999 (FEMA). Recently, in May 2026, DPIIT issued an updated Standard Operating Procedure (SOP) for processing FDI proposals, introducing a fully paperless system and a defined 12-week timeline for decisions, replacing the previous SOP issued on June 29, 2017.
The department connects to several key concepts and institutions, including the Make in India program, the National Intellectual Property Rights Policy, and the Open Network for Digital Commerce (ONDC). It also oversees the functioning of the Controller General of Patents, Designs and Trade Marks (CGPDTM) and coordinates with Invest India, the National Investment Promotion and Facilitation Agency, which is set up as a not-for-profit company under DPIIT. Furthermore, in February 2026, DPIIT updated the definition and recognition framework for Startups and Deep Tech Startups, replacing the 2019 guidelines.