Context

• Government has notified renaming the Department of Industrial Policy and Promotion (DIPP) as the Department for Promotion of Industry and Internal Trade to meet the demand of ‘Confederation of All India Traders (CAIT)’ for forming a separate ministry for internal trade.
• It will function under the Ministry of Commerce and Industry.

About

Apart from the previous responsibilities of DIPP relating to general industry policy, Administration of the Industries (Development and regulation) act, 1951, industrial management, productivity in industry, and matters related to e-commerce; the newly-named department will take care of new responsibilities and matters related to:

1. Promotion of internal trade including retail trade (matters related to internal trade were earlier under the domain of the Ministry of Consumer Affairs).
2. Welfare of traders and their employees
3. Facilitating ease of doing business and start-ups.

Significance

With this new mandate, both internal and external trade has been brought under a single Ministry (Ministry of commerce and industry). This will ensure better coordination and help in promoting the growth of both segments of the trade.