DPIIT | Business Upturn

DPIIT collaborates with Stride Ventures to boost Indian startups’ global expansion

Aditya Bhagchandani — Sat, 04 Jan 2025 10:19:15 +0000

The Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce & Industry has partnered with Stride Ventures, a prominent venture debt firm, to accelerate the growth of Indian startups and enhance their global footprint.

This collaboration aims to integrate financial support, strategic mentorship, and market access for startups, aligning with India’s broader economic goals under the “Make in India” and “Make for the World” strategies. The initiative will particularly focus on high-growth sectors such as manufacturing, consumer goods, B2B, and cleantech.

Key Highlights of the Collaboration:

Empowering Entrepreneurs: Stride Ventures has committed to providing funding, mentorship, and access to a global mentor network for startups, especially those from tier-2 and tier-3 cities.
Dedicated Programs: Initiatives like the Bharat Grand Challenge will promote innovation and investment, helping startups expand globally and enabling international startups to enter the Indian market.
Diverse Funding Mechanisms: Startups will be educated on varied fundraising instruments, including venture debt, to support their aspirations.

Ishpreet Singh Gandhi, Founder & Managing Partner of Stride Ventures, emphasized the mission of empowering entrepreneurs to “Make in India” and deliver impactful, globally competitive solutions.

No Change in Policy: DPIIT Secretary clarifies India’s stance on Chinese FDI

Aditya Bhagchandani — Wed, 14 Aug 2024 08:58:27 +0000

India’s policy on foreign direct investment (FDI) from China remains unchanged, according to Rajesh Kumar Singh, Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT). Singh addressed recent speculation about a potential shift in policy, emphasizing that Chinese investments will continue to undergo rigorous scrutiny on a case-by-case basis.

Key Points:

No Policy Shift: Singh confirmed that there is no change in India’s stance regarding Chinese FDI. The policy of increased scrutiny remains in place.
Press Note 3: Introduced on April 22, 2020, Press Note 3 mandates thorough checks on investments from countries sharing a land border with India, including China, to prevent opportunistic takeovers.
Current Situation: Singh stated that India has not blocked FDI proposals from China but has applied heightened scrutiny. Approximately 30-40% of applications from land border countries, including China and Hong Kong, have been approved over the past two years.

Speculation and Clarification:

Economic Survey 2023-24: The suggestion from Chief Economic Advisor Anantha Nageswaran’s Economic Survey to increase Chinese investments to address the trade gap sparked discussions about a policy shift.
Online Portal for E-Visas: The recent establishment of an online portal for e-visas for Chinese technicians has also fueled speculations. Singh described the Economic Survey’s suggestion as merely an academic exercise and not indicative of a policy change.

Official Statement:

Singh emphasized that the scrutiny of FDI from China will continue as per the existing guidelines, ensuring that there is no complete blockade or abrupt policy shift. He encouraged viewing the discussions around the Economic Survey as exploratory rather than indicative of imminent policy changes.

CBI raids former DPIIT secretary Ramesh Abhishek’s residence amid allegations of disproportionate assets

Matrika Shukla — Tue, 20 Feb 2024 11:57:40 +0000

Former Department for Promotion of Industry and Internal Trade (DPIIT) Secretary, Ramesh Abhishek, found himself at the centre of a Central Bureau of Investigation (CBI) conducted raids at his residence in Delhi. The searches come in the wake of allegations suggesting his involvement in amassing disproportionate assets and his purported association with P. Chidambaram, a prominent political figure.

Ramesh Abhishek, who served as the Secretary of DPIIT, has long been under scrutiny for his alleged links to political figures and suspected financial irregularities. The allegations of amassing wealth beyond known sources of income have cast a shadow over his career, prompting the CBI to take action.

The raid at Abhishek’s Delhi residence marks a significant development in the ongoing investigation into his affairs. The CBI, armed with search warrants, descended upon his premises early this morning, combing through documents and seizing potential evidence related to the allegations against him.

The investigation is focused on uncovering the trail of Abhishek’s purported ill-gotten gains and establishing the extent of his involvement in any illicit activities. The agency remains tight-lipped about the specifics of the evidence gathered during the raid but asserts its commitment to conducting a thorough and impartial investigation.

Abhishek’s alleged proximity to P. Chidambaram, a senior leader in the political landscape, adds a layer of complexity to the unfolding scenario. Speculations abound regarding the nature of their association and whether it played a role in facilitating Abhishek’s alleged financial misconduct.

As the investigation progresses, questions linger about the potential ramifications for Abhishek and those implicated alongside him. The CBI’s actions underscore the agency’s determination to pursue justice and uphold the integrity of public institutions, regardless of the individuals involved.

E-commerce policy & and consumer protection standards in advanced stage of finalization: DPIIT secretary Singh

Sakshi Vats — Thu, 11 May 2023 14:53:14 +0000

According to DPIIT secretary Rajesh Kumar Singh, the long-awaited e-commerce policy and consumer protection standards could be announced shortly since the policy is nearing completion.

The Open Network for Digital Commerce (ONDC), which aims to democratise e-commerce in India by allowing buyers and sellers to trade through a single platform, would also be covered by the regulation.

“E-commerce rules and e-commerce policy both will be congruent with each other. That is the idea.

At a press conference, Singh informed reporters that the drill was far along.

In response to concerns in the sector that ONDC might adversely affect e-commerce platform profits, Singh stated that the goal of ONDC was to try and establish an inclusive playing field for various enterprises, particularly the smaller ones.

“Because of the enhanced competition the consumer also gains. But that is not the immediate intention.It’s not like we are trying anybody out of business, or we are an upfront competitor to any particular portal or e-commerce provider. We want all e-commerce players to be part of this network,” he continued.

On the advancements achieved by ONDC, CEO Thampy Koshy stated that the goal is not to engage in a price war and destroy everything. He also noted that daily transactions have increased from 50 in January of this year to 20,000 now.

According to a research by Motilal Oswal, ONDC could be a threat to Zomato if it scales up significantly across categories, which would enable it to operate more effectively.

Given that it links establishments and customers directly, ONDC is viewed as a serious threat to food-delivery services like Swiggy and Zomato. Without a middleman, ONDC enables restaurants to sell food straight to customers.

India makes more real time digital transactions than US, China & Europe combined according to DPIIT

United News of India (UNI) — Tue, 14 Mar 2023 14:35:22 +0000

New Delhi, March 14: India makes more real time digital transactions than US, China and Europe combined, Anurag Jain, Secretary, Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, said on Tuesday.

“Real development happens when every citizen is able to make choices about what they want to do with their life without worrying about the basic necessities of life,” he said during an interactive session on ‘Inclusion on the Back of Technology: Best Practices’ at the CII Partnership Summit 2023 held in the city.

The Secretary said that in terms of real-time online digital transactions, what India does is more than US, China and Europe put together.

He said that when Prime Minister Narendra Modi talks about the vision for 2047, he is talking about the vision of a developed country, not just from the perspective of per capita income, but a country where all basic needs are met.

“India has a paperless, presence-less, and cashless solution for everything. The public digital infrastructure of India is unique. It is based on open systems, open architecture and open network, which allows everyone to plug in and removes entry barriers,” he added.

(Except for the headline, this story has not been edited by Business Upturn staff and is published from a syndicated feed.)

Cabinet likely to accept proposal to permit FDI in LIC tomorrow: Report

Himanshu Mishra — Fri, 25 Feb 2022 16:51:37 +0000

The Union Cabinet will possibly accept the plan to permit foreign direct investment (FDI) in Life Insurance Corporation of India (LIC) tomorrow, an action that will facilitate foreign funds to join in the forthcoming IPO of the state-owned insurance behemoth.

The decision is anticipated at the conference of the Union Cabinet and the Cabinet Committee on Economic Affairs (CCEA), which is slated for tomorrow, according to reports.

It is suggested that a special provision may be encompassed in the Consolidated FDI Policy for FDI in LIC, the sources explained. Since the FDI ceiling for public sector banks is 20 percent on the approval route, a related limit may be maintained for FDI in LIC. But the government may assume to keep FDI in LIC under the mechanical route so that the capital raising method may be accelerated, although the final ruling will be taken by the cabinet only.

As per the recent FDI policy issued by the Department for Promotion of Industry and Internal Trade (DPIIT), foreign investment is authorized in “insurance companies” and “intermediaries or Insurance intermediaries.” Since LIC is neither a firm nor an intermediary, it is not enclosed by either. Further, no provision of FDI under either the LIC Act, 1956 or the Insurance Act, 1938 or the restrictions has been made. Even the Insurance Regulatory and Development Authority Act, 1999 doesn’t have such conditions.

DPIIT calls out for changes in FDI policy to facilitate LIC disinvestment

Malvika Choudhary — Thu, 06 Jan 2022 15:04:13 +0000

The Government of India is calling out for changes in the foreign direct investment (FDI) policy to sanction the disinvestment of the Life Insurance Corporation of India (LIC). The decision came after consultations with the finance ministry. The e-commerce policy is at the last stages of finalisation according to a top government official.

The current policy related to the sector will not facilitate the disinvestment process of LIC and, hence, needs to be revised, stated Anurag Jain, secretary in the Department for Promotion of Industry and Internal Trade (DPIIT).

“We are working on further simplification of the FDI policy. A very important point for further simplification is required urgently as we have to do the LIC disinvestment. So, we would be coming out with a revised FDI policy which will facilitate LIC disinvestment,”

“We have had two rounds of discussions at my level and now, we have (DPIIT, DFS and DIPAM) come on the same page. So, we are in the process of drafting those changes in the FDI policy. We will go to the Cabinet (for approval), ” he said

According to the current FDI policy, 74 per cent of foreign investment is accorded under the automatic route in the insurance sector. Nevertheless, these rules do not apply to the Life Insurance Corporation of India (LIC), which is administered through a separate LIC Act. The Government has already approved the continuation of SIP, for a further duration of five years (FY 2021- 22 to 2025-26) with a financial outlay of Rs. 9.70 billion, vide Notification dated 29 November 2021.

Foreign Direct Investments (FDI) can be made under two routes—Automatic Route and Government Route. Under the Automatic Route, the foreign investor or the Indian company does not require any approval from RBI or the Government of India for the investment. FDI Policy is formulated by the Government of India.

Government receives maximum Foreign Direct Investment (FDI) proposals from neighbouring nations

News Desk — Sun, 19 Sep 2021 11:32:48 +0000

As per the saying of an official, maximum foreign direct investment (FDI) proposals has been received by the government in thr⅞ee departments electronics and IT, industry and internal trade, and heavy industries from countries sharing land borders with India.

Earlier in April 2020, following the COVID-19 pandemic the government has made an agreement compulsory for foreign investments from countries that share land borders with India to control unscrupulous takeovers of domestic firms.

China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan are the countries that share land borders with India as per the decision government approval for investments any sector in India it is being needed to have FDI proposals. According to officials, the Manufacturing of heavy machinery, automobile, auto components; computer software and hardware; trading, eCommerce, and manufacturing of light engineering and electrical are the important sectors under which these FDI proposals are mainly included.

Several proposals have been received by the three other departments, including the ministry of new and renewable energy and the department of pharmaceuticals, added the official. Up to June 15, this year undecided FDI proposals received under this decision in the Ministry of Electronics and IT; Department for Promotion of Industry and Internal Trade (DPIIT); and Ministry of Heavy Industries are over 40.

“A company or an individual from a country that shares a land border with India can invest in any sector here only after getting government approval,” the Department for Promotion of Industry and Internal Trade (DPIIT) said in a press release in April this year. Committed FDI cells to process these proposals expeditiously as been taken in advice by All administrative ministries and departments. From April to June India has received USD 17.6 billion worth of FDI.

Nandan Nilekani joins committee to advise govt on digital monopoly

Bhomik Mathur — Mon, 05 Jul 2021 15:45:20 +0000

Infosys co-founder Nandan Nilekani, also the brain behind the biometric Aadhar Card system, will now be helping the Indian government put a check digital monopoly by accelerating the development of an Open Network for Digital Commerce (ONDC). Nilekani has joined a 9 membered committee constituted by the Modi government for advice on the measures needed to design and accelerate the adoption of ONDC.

The information was revealed in a statement issued by the Department for Promotion of Industry and Internal Trade (DPIIT) under the government’s Ministry of Commerce & Industry. According to the statement released by the DPIIT, “ONDC aims at promoting open networks developed on open source technology, using open specifications and open network protocols” which would remain independent of any particular platform.

@DIPPGOI constitutes an Advisory Committee to accelerate development of Open Network for Digital Commerce (ONDC). @QualityCouncil pic.twitter.com/6TqbF6S1iF

— Anil Agrawal (@anilarch) July 5, 2021

The release added that adoption of the ONDC is expected to digitize the entire value chain, standardize operations, promote inclusion of suppliers, derive efficiencies in logistics, and enhance the value for consumers. The Additional Secretary of the department will be the Convener of the 9 membered council.

Other members of the committee include – CEO of National Health Authority RS Sharma, QCI Chairman Adil Zainulbhai, Avaana Capital’s founder Anjali Bansal, Co-founder of Digital India Foundation Arvind Gupta, MD, and CEO of NPCI Dilip Asbe, MD and CEO of NSDL Suresh Sethi, Secretary-General of Confederation of All India Traders(CAIT)Praveen Khandelwal and Kumar Rajagopalan who is the CEO of Retailers Association of India.

India’s eight key infrastructure sectors witness decline for 8th consecutive month

Sarthak Yadav — Fri, 27 Nov 2020 14:17:05 +0000

Eight key infrastructure sectors in India witnessed an output decline for the 8th consecutive month. A decline of 2.5%, weighed down by a fall in production of crude oil, natural gas, petroleum refinery production, and steel.

As per figures released by the Department for Promotion of Investment and Internal Trade (DPIIT), remaining sectors posted an increase in production in October, with coal at 11.6%, fertiliser at 6.3%, cement at 2.8% and electricity at 10.5%.

Refinery products, with the highest weight of 28.04% in the index, registered the sharpest drop of 17%. It was followed by natural gas at 8.6%, crude oil at 6.2%, and steel at 2.7%.

In September, the core sector contraction had narrowed to 0.8% giving hopes of resurgence in manufacturing activity and economic revival but the October figures indicate that improvement may be gradual.

According to the release, during the April-October 2020-21 period, the eight-core sector has posted a decline of 13%.

DPIIT reaches out to ministries and central agencies to set regulations for e-commerce

Sarthak Yadav — Wed, 25 Nov 2020 08:33:58 +0000

The Department for Promotion of Industry and Internal Trade (DPIIT) has asked for comments from various ministries and central agencies to formulate regulations around e-commerce in India.

Ministry of Consumer Affairs, Ministry of Information Technology (MeitY), Reserve Bank of India (RBI) and India Post were included in the list of bodies addressed by DPIITand during a recent meet they discussed the draft regulation which was first proposed in February 2019

This was done to avoid conflicts with upcoming legislation such as the consumer protection bill, data policies and taxation policies which would impact e-commerce, social media and digital companies in India.

“The process is on and some issues have also been identified,” an official said.

The second draft will address the functioning of e-markets like Flipkart and Amazon, incentivise local capital into the sector, restrict bulk buying of smartphones, white goods, electronics and fashion items, and encourage local players.

India to demand foreign firms to use locally produced materials on infrastructure projects

Chittesh Dalmia — Sat, 19 Sep 2020 06:36:53 +0000

India will demand foreign firms to use more locally produced materials when working on government projects, a notification was passed on Friday.

Indian Government under leadership of Prime Minister Narendra Modi’s has launched ‘Make In India’ and ‘Atmanirbahar Bharat’. The flagship campaign aims for a self-reliant economy by urging domestic manufacturers to cut down on imports and in turn promote exports.

The Indian trade ministry’s Department for Promotion of Industry and Internal Trade (DPIIT), ordered all government administrative divisions to notify it of projects valued above Rs 1000 crore ($135.96 million) that are planned for the next five years.

DPIIT has to still announce the new local content requirement threshold for foreign firms entering into partnerships for infrastructure projects. The threshold is currently at 20-50%.

According to the notification, firms in countries which do not allow Indian companies to bid will not be allowed as a reciprocal.

Earlier, the Indian Government had banned imports from China amid border clashes.

Results of State Rankings 2019 declared which support Ecosystem Startups

Pravin Suryawanshi — Fri, 11 Sep 2020 13:06:03 +0000

Minister of Commerce & Industry and Railways Shri Piyush Goyal today released the results of the second
edition of the Ranking of States on Help to Startup Ecosystems through a virtual complimentary ceremony in the presence of Minister of State for Commerce & Industry & Minister of State (Independent Charge) for Civil Aviation, Housing and Urban Affairs Shri Hardeep Singh Puri and Minister of State for Commerce and Industry Shri Hardeep Singh Puri.

The Department for Promotion of Industry and Internal Trade (DPIIT) conducted the second edition of the States’ Startup Ranking Exercise, with the key objective to foster competitiveness and propel States and Union Territories to work proactively towards uplifting the startup ecosystem. It has been implemented as a capacity development exercise to encourage mutual learning among all states and to provide support in policy formulation and implementation.

The States’ Startup Ranking Framework 2019 has 7 broad reform area, consisting of 30 action points ranging from Institutional Support, Easing Compliances, Relaxation in Public Procurement norms, Incubation support, Seed Funding Support, Venture Funding Support, and Awareness & Outreach. To establish uniformity and ensure standardization in the ranking process, States and UTs have been divided into two groups. While UTs except for Delhi and all States in North East India except Assam are placed in Category ‘Y’. All other States and UT of Delhi are in Category ‘X’.

The exercise included a total of 22 states and 3 Union territories. Review Committees including qualified experts performed a thorough review of the responses across different criteria. Many parameters involved getting feedback from beneficiaries which was gathered through more than 60,000 calls made in 11 different languages to empathetically connect with beneficiaries to ascertain the real situation at the implementation levels.

States are classified into 5 categories for the Ranking purposes: Best Performers, Top Performers, Leaders,
Potential Leaders, and Emerging Startup Ecosystems. Entities are put in the alphabet from within each division. States are also known as pioneers in seven fields of start-up support reform. Results are annexed at Annex.

The felicitation ceremony was accompanied by the release of a National Report which highlights the vision, trajectory, methodology, and the future roadmap of the States Ranking Exercise. A State Specific Report for each of the 25 participating entities has also been released, containing a comprehensive analysis of the respective ecosystem, which highlights strengths and priority areas for the future.

A ‘Compendium of Good Practices’ adopted by various States in supporting startups has also been released. It identifies 166 good practices, which may be directly used by the States to identify and implement newer initiatives.

The National Report and Specific Reports for all participating States and Union Territories launched during the session can be downloaded from the Startup India Portal.

Ease of doing business ranking for states and UTs to be released by March 2021: DPIIT

Nivedya P T — Sun, 06 Sep 2020 14:43:54 +0000

The Department for Promotion of Industry and Internal Trade (DPIIT) has started the exercise for the ranking of states and Union Territories in terms of ease of doing business for the next year, according to a top government official.

DPIIT Secretary Guruprasad Mohapatra said that the ease of doing business of states and UTs for next year would be released by March 2021. “We have started the exercise already. We have communicated the Business Reform Action Plan (BRAP) for next year with the states/UTs, which they have to implement,” he said, according to PTI.

Last year, the department had identified 181 reform points and for 2021, it has shared 301 such points with the states and UTs.

So far, rankings which started in 2015 have been released for 2015, 2016, 2017-18 and 2019 and is based on the implementation of BRAP and feedback received. The action plan covers12 business regulatory areas such as access to information, a single-window system, labour, and the environment and this exercise is expected to promote competition among states with a view to improving the business climate in order to attract domestic as well as foreign investments.

To help states which are progressing at a slower pace, Mohapatra said that “for next year, we have sent the reform agenda and we plan to engage with them in select groups, region wise. We will hold several rounds of meetings with them” thus helping them to improve the ranking.

Andhra Pradesh has topped the chart for the third time in a row as per the 2019 rankings, released on September 5. Registering a jump of 10 places in the rankings, Uttar Pradesh occupied the second position in 2019 as against 12th in 2018.

Telangana fell to the third position from second in 2018. Among the laggard states and UTs in the ranking, Bihar was at 26th, Kerala 28th place, Manipur (31), Meghalaya (32), Nagaland (33), Odisha (34), Sikkim(35) and Tripura (36).

The borrowing limit of states from 3 per cent of gross state domestic product (GSDP) to 5 per cent in 2020-21have also been raised by the centre on May 17, which will make available an additional Rs 4.28 trillion.

“We are going much beyond the World Bank’s rankings. Reducing compliance burden is the major exercise we are doing now,” he added.