DPIIT (Department for Promotion of Industry and Internal Trade)
What is DPIIT (Department for Promotion of Industry and Internal Trade)?
DPIIT is a department under India’s Ministry of Commerce and Industry responsible for formulating and implementing policies related to industrial growth, FDI, intellectual property, and the Startup India initiative. DPIIT recognition is a prerequisite for Indian startups to access tax benefits under Section 80-IAC of the Income Tax Act, exemption from Angel Tax, and participation in government procurement programs.
Why It Matters
DPIIT recognition unlocks critical tax benefits and government support for Indian startups. For fund managers investing in early-stage companies, ensuring portfolio companies have DPIIT recognition can materially impact returns through tax savings and access to government programmes.
Key Takeaways
- 1
Administers the Startup India initiative and grants official startup recognition.
- 2
DPIIT recognition is a prerequisite for tax benefits under Section 80-IAC and Angel Tax exemptions.
- 3
Formulates policies on FDI, intellectual property, and industrial growth in India.
Related Terms
More India Terms
Explore related concepts from the same category to deepen your understanding.
SEBI (Securities and Exchange Board of India)
SEBI is India’s statutory regulatory authority for securities markets and investment funds, established under the SEBI Act, 1992. It regulates all Alternative Investment Funds (AIFs), mutual funds, portfolio managers, and market intermediaries operating in India.
Read MoreSEBI AIF Category I
Category I AIFs under the SEBI (Alternative Investment Funds) Regulations, 2012, include funds that invest in start-ups, early-stage ventures, social ventures, SMEs, and infrastructure. These funds are considered to have positive spillover effects on the economy and may receive incentives or concessions from SEBI, the Government of India, or other regulators. Sub-categories include Venture Capital Funds, Angel Funds, Social Venture Funds, and Infrastructure Funds.
Read MoreSEBI AIF Category II
Category II AIFs are funds that do not fall under Category I or III and do not undertake leverage or borrowing other than to meet day-to-day operational requirements (up to a regulatory cap). This is the most common AIF category in India and includes private equity funds, debt funds, and fund of funds that do not qualify as Category I.
Read MoreSEBI AIF Category III
Category III AIFs under SEBI regulations employ diverse or complex trading strategies and may use leverage including through investment in listed or unlisted derivatives. These include hedge funds, PIPE (Private Investment in Public Equity) funds, and other funds that trade with a view to making short-term returns. They are subject to higher regulatory reporting requirements compared to Category I and II.
Read MoreExplore Further
Explore the Full Glossary
Browse all 50 essential terms across India, Singapore, and global private markets.