The Department of Industrial Policy & Promotion was established in 1995 and is responsible for formulating and administering India's overall industrial policy. It was reconstituted in 2000 by merging the Department of Industrial Development. With India's economic liberalization in 1991, the department's role transformed from regulating industries to facilitating technology/investment and promoting development. The department formulates industrial policies and strategies to make Indian industry globally competitive, monitors industrial growth, encourages foreign collaboration, promotes foreign direct investment, and oversees intellectual property rights policy implementation.

1.  The Department of Industrial Policy &
Promotion, established in 1995, was
reconstituted in the year 2000 with the
merger of the Department of Industrial
Development .The Department of Industrial
Policy and Promotion is responsible for the
formulation and administration of overall
Industrial Policy in India.

2.  With the progressive liberalization of the
Indian economy, initiated in July 1991, there
has been a consistent expansion in the role
and functions of this
Department. From regulation and
administration of the industrial sector, the
role of the Department has been transformed
into facilitation of technology and investment
flows and promotion of industrial
development in the liberalized environment

3.  Formulation and implementation of industrial
policy and strategies for industrial development
in conformity with the developmental needs and
national objectives in order to make the Indian
industry internationally competitive;
 Monitoring and stimulation of industrial growth,
in general, and performance of industries
specifically assigned to it, in particular, and
guidance in the creation of an enabling
environment, infrastructure, and technology
transfer/collaborations on all industrial and
technical matters.

4.  Encouragement to foreign technology
collaborations at enterprise level and
formulation of policy parameters for the same
for enhancing productivity with reference to
international benchmarking and by
commissioning competitive studies.
 Promotion and facilitation of Foreign Direct
Investment (FDI) in India and mitigating
investor grievances through coordinated
grievance resolution mechanism.

5.  The department is assigned the function of
Foreign Direct and Non-Resident (NRI)
investments in the industries and
service projects. The department is
responsible for the formulation of FDI policy
and facilitation and promotion of FDI into the
country.

6.  Department of Industrial Policy and Promotion is
also responsible for Intellectual Property Rights
relating to Patents, Designs, Trade Marks and
Geographical Indication of Goods and oversees
the initiative relating to their promotion and
protection. These include the outlining of policy
and its implementation through the Office of the
Controller General of Patents, Designs and Trade
Marks. It promotes awareness regarding
protection of the Intellectual Property Rights
inherent in industrial property in conjunction
with the World Intellectual Property Organisation
(WIPO) and apex industry associations apart from
similar initiatives involving regional industry
associations. It also provides inputs on various
issues relating to the Agreement on Trade
Related Aspects of Intellectual Properties (TRIPS)
related to World Trade Organisation (WTO) in
these fields.