Government Agencies supporting Business Growth

With an aim to provide ease of access to business providers and clear paths for setting up businesses in India, the Government of India has improved many departments and created bodies to handhold business growth in India. The Department for Promotion of Industry and Internal Trade (DPIIT) is responsible for promoting industrial development of the country by facilitating investments in new technology, formulating the Industrial Policy at a Central Government level, and promoting balanced growth of the industrial eco-system. The role and functions of the DPIIT include:

• Industrial Management
• Productivity in industry
• Matters related to e-commerce and Startups
• Promotion of internal trade including retail trade
• Welfare of traders and their employees
• Matter relating to facilitating ‘Ease of Doing Business’
• Integrated development of the logistics sector
• Monitoring of implementation of projects for their expeditious completion
• Implementation of PM Gati Shakti National Master Plan
• Protection of Intellectual Property Rights (IPR) in the fields of Patents, Trademarks, Copyrights, Industrial Designs and Geographical Indications of Goods and administers Acts, Regulations, and Rules made under them

In addition, the DPIIT is also responsible for the promotion and development of industries related to Cables, Light Engineering products (eg. Sewing machines, typewriters, weighing machines, bicycles, etc.), Light Industries (e.g. Polywood, stationery, kmatches, cigarettes, etc.), Light Electrical Engineering products, Raw Films, Hard Board, Paper and Newsprint, Tyres and Tubes, Salt, Cement, Ceramics, Tiles and Glass, Leather and Leather Goods Industry, Soaps and Detergents, Footwear Design & Development and any other Industry not covered by other Ministries/Departments.⁶

Invest India is the country's official Investment Promotion and Facilitation Agency, serving as the first point of reference for potential investors. Their domain and functional experts provide sector- and state-specific inputs and hand-holding support to investors through the entire investment cycle, from pre-investment decision-making to policy impact analysis and expansion advisory. They assist with location identification, expediting regulatory approvals, facilitating meetings with relevant government/ corporate officials, and also provide after-care services that include initiating remedial action on problems faced by investors.⁷

Prime Minister (PM) Gati Shakti⁸, a digital platform was formally launched in the year 2021 to provide multi-modal connectivity to all industrial zones in India, thus promoting holistic infrastructure for manufacturing industries. This National Master Plan integrates 24 Ministries including Railways, Aviation, Shipping, and Road Transport to promote the implementation of infrastructure connectivity projects. The platform envisages generating multiple employment opportunities, rationalizing the overall logistics costs, improving supply chains, and providing a competitive advantage to locally manufactured goods.

To realize the government's dream of India becoming a USD 5 trillion economy by FY 2024-25, the Union Cabinet has set up two independent committees, namely the 'Empowered Group of Secretaries' (EGoS) and the 'Project Development Cells' (PDCs).⁹ The main objective of these committees is to improve the investment environment in the country, promote domestic manufacturing, and make India a favored destination for foreign investment.

Additionally, the Government of India promotes thrust sectors and formulates policies in each sector through their think-tank, the National Institution for Transforming India (also known as NITI Aayog) in conjunction with the bodies mentioned above for sustainable and progressive growth.

• The EGoS comprises of the Cabinet Secretary, the CEO of NITI Aayog and the Secretaries of the DPIIT, the Department of Commerce, the Department of Revenue, and the Department of Economic Affairs
• The EGoS committee is responsible for clearances from ministries. They must also evaluate investments and facilitate them while bringing synergy to ensure collaboration of all departments
• The PDC is accountable for the development of investible projects in coordination between the Central Government, State Governments, and the FDI pipeline
• The PDC aims to create projects with all approvals along with detailed schematics. It also aims to bridge gaps and identify issues in the system to resolve investment decisions and remove lags

Other than the Central Government agencies mentioned above, every state has its respective investor facilitation centers and industrial corporations to support companies in terms of land scouting, obtaining relevant registrations, etc. A dedicated industrial policy is also formulated by these states to promote new investments. In this regard, multiple incentives are offered by the states based on the sector, location and size of the investment, and employment generation, among others. Some of these incentives include Investment Promotion Subsidy (IPS), stamp duty exemption, electricity duty exemption, GST reimbursement, etc.

• 6. Role and Functions of the Department for Promotion of Industry and Internal Trade, Department for Promotion of Industry and Internal Trade, https://dpiit.gov.in/about-us/role-and-functions-dpiit, as accessed on 17 July 2023
• 7. About Us, InvestIndia, https://www.investindia.gov.in/about-us, as accessed on 17 July 2023
• 8. PM Gati Shakti - https://pmGati Shakti.gov.in/pmGati Shakti/login#, accessed on 17 July 2023
• 9. EGoS and PDCs, https://pib.gov.in/PressReleasePage.aspx?PRID=1629037, accessed on 17 July 2023