100-Day action plan: DPIIT looking to start up funding & spur manufacturing push

The Department for Promotion of Industry and Internal Trade (DPIIT) is likely to focus on easing early-stage funding for startups and reducing the compliance burden on businesses and overall logistics cost as part of its 100-day action plan, an official told ET.

The DPIIT, which is under the commerce and industry ministry, is also working on a policy for deep-tech startups which includes nine areas that need intervention to create a conducive ecosystem for them, the official said. "The consultations for the policy are on and we are in advanced stages of discussion," the official said. "Comments from 18 ministries have been taken."

The department's plan also includes reforms with regard to ease of doing business - from commencement to closure. Separately, a public-private partnership model of governance is being discussed, the official said.

Efforts are also on to lower the compliance burden under the second edition of the Jan Vishwas (Amendment of Provisions) Bill. Under the Bill, which was passed last year, more than 40,000 compliances were eliminated or simplified. There is a significant push to reduce the burden of criminalisation of many laws under its second edition.

As part of the 100-day plan, the Steering Committee for Advancing Local Value-add and Exports, or SCALE Committee, under the DPIIT, has been asked to identify the other sectors which may need manufacturing incentives. While some incentive schemes could be part of the 100-day agenda, others are likely to make it to the department's five-year plan, the official said.

Focus on Flagship Schemes
"Plans are being made for many flagship schemes, including ONDC (Open Network for Digital Commerce), PM GatiShakti and Production-Linked Incentive scheme," the official said.

India has put in place PLI schemes for 14 sectors, including electronics, white goods, textiles and pharma, carrying an outlay of ₹1.97 lakh crore. These were announced during the Covid pandemic in 2020 to boost domestic manufacturing and exports.

Linkage of institutions such as the National Institute of Design with the Quality Council of India is also on the cards.