The full form of DIPP is Department of Industrial Policy and Promotion.

The Department for Promotion of Industry and Internal Trade (DPIIT) was established in the year 1995 and was reconstituted in the year 2000 with the merger of the Department of Industrial Development. Earlier, separate Ministries of Small Scale Industries & Agro and Rural Industries (SI &A& RI) and Heavy Industries and Public Enterprises (HI&PE) were created in October, 1999. The department was earlier called Department of Industrial Policy & Promotion and was renamed as DPIIT in January, 2019.

In 2018, matters related to e-commerce were transferred to the Department and in 2019, the Department has been given charge for matters related to Internal Trade, welfare of traders and their employees and Startups. The role of DPIIT is to promote/accelerate industrial development of the country by facilitating investment in new and upcoming technology, foreign direct investment and support balanced development of industries.

According to the Allocation of Business (AOB) Rules, as updated, the Department is responsible for determining the Industrial Policy at Central Government level, including the following matters:

1. Productivity in Indian industry
2. Industrial Management
3. Matters related to e-Commerce and start-ups
4. Facilitating Ease of Doing Business (EoDB)
5. Promotion of internal trade including retail trade, welfare of traders and their employees, and
6. Administration of Industries (Development and Regulation) Act, 1951, grant of Industrial Licenses (IL) and acknowledging Industrial Entrepreneurs Memorandum (IEM).

The Department handles matters related to protection of Intellectual Property Rights (IPR) in fields of Patents, Trademarks, Copyrights, Industrial Designs and Geographical Indications of Goods and administers Acts, Regulations and Rules made thereunder. The department also handles matters related to Foreign Direct Investment (FDI) and investment by NRIs, and undertakes promotion of investment for industrial development of the country. There are five territorial divisions for international cooperation and industrial promotion handling matters emanating from America, Europe, CIS countries, Africa and Middle East, Asia and Oceania.

The Department is responsible for promotion and development of sectors related to Cables, Light Engineering Industries, Light Industries, Light Electrical Engineering Industries, Paper & Newsprint, Tyres & Tubes, Salt, Cement, Ceramics, Tiles & Glass, Leather Goods Soaps & detergents and Industries not covered by other Ministries/Departments.

The following legislations are administered by the Department:

1. The Industries (Development and Regulation ) Act, 1951
2. The Explosives Act, 1884
3. The Inflammable Substances Act, 1952
4. The Boilers Act, 1923
5. The Copyright Act, 1957
6. The Patents Act, 1970
7. The Design Act, 2000
8. The Geographical Indications of Goods (Registration and Protection) Act, 1999;
9. The Trade Marks Act, 1999
10. The National Institute of Design Act, 2014.