PrintFriendlyUnder the visionary leadership of Prime Minister Narendra Modi, India has made remarkable strides in its journey toward becoming a global economic powerhouse. The Department for Promotion of Industry and Internal Trade (DPIIT) has been at the forefront of this transformation through progressive policies, innovative initiatives, and a focus on fostering a conducive business environment. The milestones achieved in 2024 highlight DPIIT’s critical role in shaping India’s ambitious Vision ViksitBharat.
From unprecedented strides in manufacturing to fostering innovation and streamlining logistics, DPIIT’s achievements have bolstered India’s position on the global stage, reaffirming the success of Prime Minister Narendra Modi’s visionary policies. Here’s a more detailed dive into the achievements and initiatives of the DPIIT in 2024.
Manufacturing Renaissance through PLI Schemes
Aligned with India’s vision of becoming ‘Atmanirbhar,’ the Production Linked Incentive (PLI) scheme was introduced for 14 key sectors, with an outlay of ₹1.97 lakh crore (over US$26 billion), aimed at boosting manufacturing and exports. Approved by the Cabinet on November 11, 2020, the scheme has made significant strides, attracting ₹1.46 lakh crore (US$17.5 billion) in investments, generating ₹12.50 lakh crore (US$150 billion) in production, and ₹4 lakh crore (US$48 billion) in exports. It has also created 9.5 lakh jobs, both directly and indirectly. By FY 2023-24, ₹9,721 crore in incentives had been disbursed, with over 1,300 manufacturing units set up across 14 sectors under 10 Ministries and Departments in 27 States and Union Territories. These sectors range from mobile manufacturing to drones and high-efficiency solar PV modules, each contributing to India’s self-reliance and global competitiveness.
The PLI scheme is expected to have a cascading impact on India’s MSME sector, as the anchor units in each sector will create a demand for new suppliers across the entire value chain. For example, the PLI scheme for White Goods focuses on the manufacturing of components for air conditioners and LED lights, with a ₹6,238 crore outlay approved for FY 2021-22 to FY 2028-29. The goal is to increase domestic value addition from 20-25% to 75-80% by the end of the scheme. By September 2024, 47% of the committed investment of ₹6,962 crore had been achieved, with 100% of the projected direct employment of 48,000 jobs realized. The third round of online applications for the White Goods sector attracted 38 applicants, signaling strong industry interest, with an expected investment of ₹4,121 crore.
PM Gati Shakti: Revolutionizing Infrastructure Development
The PM GatiShakti National Master Plan (NMP), launched by Prime Minister Shri Narendra Modi on October 13, 2021, is a GIS-enabled platform designed to integrate various infrastructure data layers, including roads, railway lines, ports, inland waterways, telecom lines, power lines, and social sector assets. This integration facilitates comprehensive and coordinated planning for multimodal logistics. An inter-ministerial institutional mechanism has been set up at both the Centre and State levels to oversee its implementation.
Significant progress has been made under PM GatiShakti, with 44 Central Ministries and Departments, including 8 infrastructure, 16 social, 15 economic, and 5 others, along with 36 States/UTs, onboarded to the platform. In total, 1,614 data layers have been integrated, comprising 726 from Central Ministries and 888 from States/UTs. Additionally, 22 social sector ministries have contributed over 152 data layers, covering assets such as primary healthcare facilities, post offices, hostels, and colleges. Standard Operating Procedures (SOPs) for Data Quality Management have been established for 8 infrastructure and 15 social ministries, with Goa being the first State to notify its SOP. Furthermore, the Network Planning Group has held 81 meetings, evaluating 213 projects with a combined cost of ₹15.48 lakh crore. Over 200 logistics infrastructure projects, valued at ₹5,496 crore, have been recommended by the States.
National Logistics Policy: Reducing Costs, Enhancing Competitiveness
To complement the PM Gati Shakti initiative, the National Logistics Policy (NLP), launched on September 17, 2022, aims to enhance India’s economic growth and business competitiveness through cost-effective logistics networks. The policy focuses on improving soft infrastructure and logistics sector development, including process reforms, service improvements, digitization, human resource development, and skill enhancement.
The NLP outlines three key objectives: (i) reducing logistics costs in India to align with global benchmarks by 2030; (ii) improving India’s Logistics Performance Index ranking, with the goal of being among the top 25 countries by 2030; and (iii) creating a data-driven decision support mechanism to optimize the logistics ecosystem. The policy is being executed through a Comprehensive Logistics Action Plan (CLAP), which defines a detailed roadmap for key action areas. To streamline business operations in the logistics sector, 37 logistics-related digital systems and portals have been integrated across 10 Ministries and Departments, facilitating the tracking and tracing of India’s containerized EXIM cargo.
In terms of knowledge enhancement, logistics-related courses have been introduced in 115 universities, and an MoU has been signed with Gati Shakti Vishwavidyalaya. A Centre of Excellence (CoE) for City Logistics was set up at the School of Planning and Architecture in Bhopal on May 8, 2024, with over 100 officials trained. Seven qualification packs have been validated to promote skill development. The 6th edition of the Logistics Ease Across Different States (LEADS) report is scheduled for release in December 2024, and 26 States/UTs have notified their respective State Logistics policies. To address systemic issues, a Service Improvement Group (SIG) has been formed as an inter-ministerial consultative body. Additionally, sector-specific plans for improving logistics efficiency (SPEL) have been finalized for coal and cement sectors, with plans for the food, pharma, fertilizers, and steel sectors currently under development.
Make in India: Catalyzing Economic Growth
Since the launch of Make in India (MII), the government has focused on 24 sub-sectors chosen for their alignment with India’s industrial strengths, competitive advantages, potential for import substitution, export opportunities, and capacity for creating jobs. Various initiatives under MII, including the National Single Window System (NSWS), Product Development and Commercialization (PDC), PM Gati Shakti (PMG), Investment Infrastructure and Logistics Board (IILB), One District One Product (ODOP), and India Innovation Growth (IIG), are integrated within the ‘Scheme for Investment Promotion’ (SIP). This Central Sector Scheme, with an outlay of ₹970 crore for FY 2021-22 to 2025-26, focuses on investor targeting, facilitation, investment promotion, and project management activities.
India recorded a 69% surge in FDI equity inflows in manufacturing, reaching $165 billion between 2014 and 2024. In Q1 FY 2024-25 alone, inflows increased by 26%, amounting to $22.5 billion. These figures underscore investor confidence in India’s robust reforms and its emergence as a global manufacturing hub.
National Industrial Corridor Development Programme
The National Industrial Corridor Development Programme aims to build quality infrastructure ahead of demand, ensuring that developed land parcels are ready for immediate allotment. This initiative is designed to attract investments into manufacturing, positioning India as a key player in the global value chain. The five-year action plan focuses on developing 12 new industrial cities, in addition to the 8 already approved projects, all adopting Industry 4.0 standards. These efforts align with the government’s “Atmanirbhar Bharat” vision, addressing gaps in physical and economic infrastructure, as well as promoting social and gender equity. The programme also seeks to generate substantial employment opportunities for local populations and youth.
As of June 2024, 308 plots spanning 1,789 acres have been allotted in four cities—Dholera, Shendra Bidkin, Greater Noida, and Vikram Udyogpuri. In total, 2,104 acres of developed industrial land and 2,250 acres of land for commercial, residential, or other uses are ready for immediate allotment. With 68 companies already in operation and 83 projects under construction, the programme is well underway. Future expansion plans include 12 new greenfield projects approved by the Union Cabinet in August 2024, covering 25,975 acres with a project cost of ₹28,602 crore. These projects have the potential to create nearly 940,000 jobs and attract investments worth ₹1.5 lakh crore. Focused on sectors such as Semiconductors, Aerospace & Defence, IT & ITeS, Electronics, Renewable Energy, Pharmaceuticals, and others, these industrial hubs are expected to drive regional transformation and balanced development across India.
Advancements in Intellectual Property Rights
The strengthening of Intellectual Property (IP) administration in India has streamlined various processes to ensure ease of doing business, particularly around the submission of priority documents. Key initiatives include the introduction of e-filing for documents and e-hearings, with a 10% rebate on e-filing of Patents, Trademarks (TM), and Designs. Additionally, an AI and ML-based TM search system, as well as a Generative AI-based Public Chatbot (IP Saarthi), have been introduced. To further enhance the capacity of the IP office, 770 new patent examiners have been recruited between 2019 and 2024, and 470 officials have been promoted to the position of Controllers in 2022-23.
The legislative framework surrounding IP rights has been bolstered through various process reforms aimed at expediting patent examination for startups, SMEs, female applicants, government departments, and academic institutions. Compliance has been simplified, such as by reducing the number of forms for trademarks and introducing new forms to encourage innovation. Fee rebates of up to 80% for startups, MSMEs, and educational institutes for patent filings, and 75% for startups in design filings, aim to further support this ecosystem. In terms of skill-building, 27 universities have established IPR Chairs, and over 1,200 awareness programs have been organized across the country, reaching more than 500,000 students and faculty members. The generation of IP has also significantly increased, with patents granted in 2023-24 increasing by 17 times compared to 2014-15, and trademark registrations rising sevenfold. India’s rank in the Global Innovation Index (GII) has improved to 39th place in 2024, reflecting the success of these efforts.
Foreign Direct Investment (FDI):
The Indian government has established an investor-friendly Foreign Direct Investment (FDI) regulatory framework, allowing 100% FDI in most sectors under the automatic route, without the need for government approval. As a result, nearly 90% of FDI inflows are received through this route. The Department for Promotion of Industry and Internal Trade (DPIIT) plays a key role in formulating FDI policies, which are enforced through rules notified under the Foreign Exchange Management Act, 1999 (FEMA). These policies are managed by the Department of Economic Affairs (DEA) and regulated by the Reserve Bank of India (RBI). The Foreign Investment Facilitation Portal (FIFP) handles proposals under the government route and forwards them to the relevant ministries.
FDI in India is allowed through two entry routes: the Automatic Route, where no prior approval is required, and the Government Route, which requires approval for certain sectors and investments from countries sharing a land border with India. Some sectors, such as lottery businesses, gambling, tobacco manufacturing, atomic energy, and others, are prohibited from receiving FDI. Over the years, the government has progressively liberalized FDI policies, expanding the automatic route to sectors like coal, contract manufacturing, and insurance intermediaries. FDI reforms in 2021 included raising the limit in the insurance sector to 74% and including telecom under the automatic route. As of 2024, the space sector has also been liberalized. From 2000 to 2024, India recorded a total FDI inflow of USD 991 billion, with 67% (USD 667 billion) of this amount received in the last decade. In FY 2024-25, FDI inflows showed a strong performance, reaching USD 22.5 billion in the first quarter, marking a 26% increase compared to the same period in the previous year.
Startup Ecosystem: Driving Innovation and Inclusion
Launched by the Hon’ble Prime Minister on 16th January 2016, the Startup India initiative has emerged as a catalyst for innovation across India. The initiative has implemented several programs aimed at fostering entrepreneurship, building a robust startup ecosystem, and transitioning India from a nation of job seekers to one of job creators. Since its inception, more than 1,49,000 startups have been recognized under this initiative, with nearly 48% of these startups having at least one woman director, and about 50% based in tier 2 and tier 3 cities. Recognized startups are spread across every state and union territory, covering over 95% of the districts, and have created over 16 lakh direct jobs, as reported by the startups themselves.
Key initiatives under Startup India include the States’ Startup Ranking Framework and the National Startup Awards, both aimed at recognizing and promoting the startup ecosystem. Efforts like the Bharat Startup Knowledge Access Registry (BHASKAR) and manufacturing incubation are helping to drive product-based startups. Events such as the Startup Mahakumbh have further strengthened India’s startup culture. Aligned with the Prime Minister’s vision of “Don’t just keep your dreams local, make them global,” Indian startups are increasingly expanding beyond national borders, establishing their presence in both emerging markets and developed economies. These startups are proving their scalability and affordability on the global stage.
Ease of Doing Business and Trust-Based Governance
As part of India’s ongoing effort to reduce the compliance burden, 42,028 compliances have already been eliminated, with 2,875 still under review and 7,204 retained compliances being closely monitored. Of the total compliance reduction identified, 93% was achieved in 2021-22, 5% in 2023, and 2% in 2024 (as of September 26, 2024). Additionally, 3,765 provisions have been decriminalized by Ministries, Departments, and States/UTs, with the Jan Vishwas Act, 2023, decriminalizing 42 Central Acts administered by 19 Ministries/Departments. The Jan Vishwas 2.0 initiative has also been launched, incorporating insights from previous efforts to further ease compliance processes.
The National Single Window System (NSWS) has onboarded 32 Central Ministries/Departments, offering 277 G2B approvals. As of October 14, 2024, 7.10 lakh approvals have been applied for, and 4.81 lakh approvals have been granted through the NSWS platform. The system is integrated with 29 States/UTs’ Single Window Clearances (SWCs), and the Know Your Approvals (KYA) service is live for 33 States/UTs. The Business Reforms Action Plan (BRAP) 2024 framework, comprising 344 reforms (57 Central and 287 State), has been shared with States and Ministries. Following the discontinuation of the World Bank’s Doing Business Report in 2020, India will be assessed using the B-READY framework, with its report to be published in April 2026.
One District One Product (ODOP) Initiative:
The One District One Product (ODOP) initiative is designed to promote balanced regional development across India by highlighting indigenous products and supporting local artisans. As part of this effort, 1,256 products from over 780 districts in all 36 states and union territories have been identified. The program’s key objective is to address challenges across the entire supply chain of selected products, improve market accessibility, and provide dedicated support to producers in order to unlock the full potential of these products.
In the Union Budget 2023-24, funds were allocated to establish PM Ekta Malls in all states under the “Scheme for Special Assistance to States for Capital Investment.” This initiative aims to enhance market access for ODOP products, promote indigenous goods, and create employment opportunities. Development project reports (DPRs) were submitted by 28 states, with 27 being approved, and funds released for these states. Nine states have already completed the foundation stone laying ceremonies for their PM Ekta Malls. The 2nd edition of the National ODOP Awards in 2024 saw participation from 587 districts and 23 Indian Missions abroad, with a total of 641 applications. Additionally, ongoing capacity-building programs in collaboration with organizations like the National Institute of Design (NID) are further strengthening the initiative. Over 110 brands have been tagged under ODOP, and coordination with various ministries ensures a comprehensive, whole-of-government approach.
ONDC, IPRS & Jan Vishwas Act:
The Open Network for Digital Commerce (ONDC) is a transformative initiative launched by DPIIT to democratize e-commerce in India. Built on open-source principles, ONDC employs standardized protocols for various e-commerce operations such as cataloguing, inventory, and order management, promoting openness, unbundling, and interoperability. Since its institutionalization as a Section-8 not-for-profit company in 2021, ONDC has witnessed rapid growth. By September 2024, the network processed 12.8 million orders, contributing to a total of 113.4 million orders to date. Currently, ONDC includes 115 active Network Participants, comprising 26 buyer NPs, 80 seller NPs, and 18 logistic providers, and operates in over 1,100 cities, connecting 7.01 lakh sellers and service providers.
The Industrial Park Rating System (IPRS) aims to evaluate and enhance industrial competitiveness by recognizing the best-performing parks and identifying areas for improvement. Initiated by DPIIT, Invest India, and the Asian Development Bank, IPRS has evolved through phases, with the second iteration (IPRS 2.0) covering 51 SEZs and 24 private sector industrial parks. As of the latest report, 449 out of 478 nominated parks were assessed, with 41 rated as “Leaders” and 90 as “Challengers.” Meanwhile, the National Single Window System (NSWS) continues to streamline approvals, integrating 277 central and 2,977 state-level approvals for businesses. By October 2024, over 7.1 lakh approvals were applied for, demonstrating the platform’s critical role in enhancing ease of doing business. Additionally, initiatives like the Jan Vishwas Act, which decriminalized 183 provisions across 42 central Acts, promote trust-based governance, reducing unnecessary burdens and improving the business environment.
Paving the Path for a Developed Nation
DPIIT’s achievements in 2024 represent a vital leap toward realizing India’s vision of becoming a developed nation by 2047. From the PLI schemes and PM Gati Shakti to fostering innovation and startup growth, these initiatives underline India’s commitment to inclusive, sustainable, and self-reliant growth. As the nation marches ahead, these transformative efforts promise to redefine its economic landscape and position it as a global leader.
Author
(The views expressed are the author's own and do not necessarily reflect the position of the organisation)
