Ministry of Commerce and Industry: A Comprehensive Guide to Its Formation, Vision, Impact, and More

The Ministry of Commerce and Industry is a pivotal institution of the Government of India, responsible for fostering trade, regulating markets, and promoting industrial growth to drive economic development. Established to streamline trade policies and industrial initiatives, the ministry plays a crucial role in enhancing India’s global economic standing. This SEO-optimized article provides an in-depth exploration of the ministry’s formation, vision, objectives, impact, frequently asked questions, and a set of top 10 multiple-choice questions (MCQs) with detailed solutions, ensuring accurate and verified information.

Overview of the Ministry of Commerce and Industry

The Ministry of Commerce and Industry oversees the formulation and implementation of policies related to domestic and international trade, industrial development, and investment promotion. It operates through two key departments:

1. Department of Commerce: Focuses on foreign trade policies, export promotion, and multilateral/bilateral commercial relations.
2. Department for Promotion of Industry and Internal Trade (DPIIT): Drives industrial policy, foreign direct investment (FDI), and intellectual property rights (IPR).

The ministry’s efforts align with India’s vision of becoming a global economic powerhouse, fostering initiatives like Make in India, Startup India, and trade agreements to boost exports and industrial growth.

Formation and Evolution

• Formation Date: The Ministry of Commerce and Industry was re-created on October 13, 1999, under Prime Minister Atal Bihari Vajpayee, through the merger of the Ministry of Commerce and the Ministry of Industry, both of which existed since India’s independence in 1947.
• Historical Context:
  • The Ministry of Commerce was established post-independence which was established in 1905 during the British Raj to manage trade policies and export-import regulations.
  • The Ministry of Industry focused on industrial development and planning.
  • In 1995, the Department of Industrial Policy & Promotion (DIPP) was created, and in 2000, it merged with the Department of Industrial Development to form what is now the DPIIT.
• Current Leadership: As of August 2025, the ministry is headed by Piyush Goyal, Minister of Commerce and Industry (in office since May 31, 2019), supported by Ministers of State Jitin Prasada and Anupriya Patel.

Vision and Objectives

The ministry’s vision is to position India as a global leader in trade and industry by:

• Promoting Economic Growth: Facilitating trade, regulating markets, and fostering industrial development to enhance GDP contribution.
• Enhancing Global Trade: Formulating policies to boost exports, strengthen bilateral/multilateral trade relations, and integrate India into global value chains.
• Encouraging Innovation and Investment: Supporting startups, protecting intellectual property, and attracting FDI through initiatives like Make in India and Startup India.
• Sustainable Development: Promoting eco-friendly industrial practices and balanced regional development.

Key objectives include:

• Increasing India’s share in global trade to 3.5% by 2030 (from ~2% in 2023).
• Simplifying trade procedures and reducing compliance burdens.
• Strengthening domestic industries to compete globally.
• Ensuring intellectual property rights protection for innovation.

Key Functions and Departments

Department of Commerce

• Role: Formulates and implements foreign trade policies, negotiates trade agreements, and promotes exports.
• Divisions: Includes Economic Division, Trade Policy Division, Foreign Trade Territorial Divisions, and more.
• Key Initiatives:
  • Export Promotion: Supports export-oriented industries like textiles, gems, and pharmaceuticals.
  • Trade Agreements: Negotiates agreements like the India-UK Comprehensive Economic and Trade Agreement (CETA) and participates in forums like WTO and G20.
  • Special Economic Zones (SEZs): Manages SEZ policies to boost exports and industrial growth.
• Recent Activities: In 2025, Commerce Secretary Sunil Barthwal engaged with the International Maritime Organisation (IMO) and led discussions at the India-LAC Conclave to enhance trade with Latin America and the Caribbean.

Department for Promotion of Industry and Internal Trade (DPIIT)

• Role: Formulates industrial policies, promotes FDI, and oversees IPR.
• Key Responsibilities:
  • Industrial Policy: Frames policies for industrial growth, including the National Industrial Corridor Development Program.
  • FDI Facilitation: Simplifies FDI norms, resulting in $667 billion in FDI inflows from 2014 to 2024.
  • Intellectual Property Rights: Manages patents, trademarks, copyrights, and geographical indications (e.g., GI-tagged Purandar figs).
  • Startup India: Recognized 46 startups on National Startup Day (January 12, 2025).
• Recent Initiatives: DPIIT issued a corrigendum for the Impact Assessment of the Integrated Framework for Leather Development Programme (IFLDP) 2021-26 in July 2025.

Impact of the Ministry

The Ministry of Commerce and Industry has significantly shaped India’s economic landscape:

• Economic Growth:
  • Contributed to India’s GDP growth by promoting industries like manufacturing, textiles, and IT.
  • Supported states like Telangana (9.2% GSDP growth), Tamil Nadu (8.2%), and Rajasthan (8%) in FY24.
• Trade Expansion:
  • India’s merchandise exports reached $437 billion in FY24, with a target of $1 trillion by 2030.
  • Facilitated exports of GI-tagged products like Purandar fig juice to Poland in 2024.
• FDI Inflows:
  • Attracted $667 billion in FDI (2014-2024), making India a top investment destination.
  • Simplified FDI policies in sectors like defense, railways, and insurance.
• Startup Ecosystem:
  • Over 1.4 lakh startups recognized under Startup India, creating millions of jobs.
  • National Startup Award 2025 honored 46 startups for innovation.
• Global Engagement:
  • Strengthened trade ties through agreements like India-UK CETA and participation in Osaka Expo 2025.
  • Enhanced critical mineral access through the Indo-Pacific Economic Framework (IPEF).
• Job Creation:
  • Industrial corridors and SEZs generated millions of direct and indirect jobs.
  • Programs like Make in India boosted employment in manufacturing and services.

Challenges

• Trade Barriers: Non-tariff barriers and complex global trade regulations hinder export growth.
• Compliance Burden: Despite simplification, businesses face procedural delays.
• Regional Disparities: Industrial growth is uneven, with states like Bihar lagging behind.
• Global Competition: Competing with countries like China and Vietnam in manufacturing and exports.

Recent Updates (2024-2025)

• India-UK CETA: Negotiations advanced in 2025 to enhance bilateral trade.
• Osaka Expo 2025: MoU signed for India’s participation, with Minister Jitin Prasada leading efforts.
• Critical Minerals: India joined the IPEF to secure resources from countries like Australia and Chile.
• IFLDP Assessment: DPIIT initiated an impact assessment of the leather development program in July 2025.
• National Startup Day 2025: Recognized 46 startups, reinforcing India’s startup ecosystem.

Frequently Asked Questions (FAQs)

1. What is the Ministry of Commerce and Industry?
   • It is a Government of India ministry responsible for trade, industry, and investment policies, operating through the Department of Commerce and DPIIT.
2. When was the ministry formed?
   • Re-created on October 13, 1999, by merging the Ministry of Commerce and Ministry of Industry.
3. Who is the current minister?
   • Piyush Goyal, in office since May 31, 2019.
4. What is the role of DPIIT?
   • DPIIT promotes industrial growth, FDI, and intellectual property rights.
5. What is Startup India?
   • A flagship initiative to support startups through funding, mentorship, and policy reforms.
6. How does the ministry promote exports?
   • Through export promotion schemes, SEZs, and trade agreements like India-UK CETA.
7. What is the significance of Make in India?
   • It aims to boost manufacturing, attract FDI, and create jobs.
8. What is the IPEF?
   • The Indo-Pacific Economic Framework secures critical minerals for India’s industries.
9. How does the ministry support IPR?
   • DPIIT manages patents, trademarks, copyrights, and geographical indications.
10. How to access ministry schemes?
    • Visit https://www.commerce.gov.in or https://dpiit.gov.in for scheme details and applications.

Top 10 MCQs with Detailed Solutions

1. When was the Ministry of Commerce and Industry re-created?
   • A) 1947
   • B) October 13, 1999
   • C) 1995
   • D) 2000
   • Answer: B) October 13, 1999
   • Solution: The ministry was re-created on October 13, 1999, under PM Atal Bihari Vajpayee by merging the Ministry of Commerce and Ministry of Industry.
2. Which department manages foreign trade policies?
   • A) DPIIT
   • B) Department of Commerce
   • C) Ministry of Finance
   • D) NITI Aayog
   • Answer: B) Department of Commerce
   • Solution: The Department of Commerce formulates and implements foreign trade policies and export promotion measures.
3. Who is the current Minister of Commerce and Industry (as of August 2025)?
   • A) Nirmala Sitharaman
   • B) Piyush Goyal
   • C) Jitin Prasada
   • D) Anupriya Patel
   • Answer: B) Piyush Goyal
   • Solution: Piyush Goyal has been the minister since May 31, 2019.
4. What is the primary objective of DPIIT?
   • A) Export promotion
   • B) Industrial policy and FDI
   • C) Agricultural development
   • D) Fiscal policy
   • Answer: B) Industrial policy and FDI
   • Solution: DPIIT focuses on industrial growth, FDI facilitation, and intellectual property rights.
5. Which initiative recognized 46 startups in 2025?
   • A) Make in India
   • B) Startup India
   • C) Digital India
   • D) Skill India
   • Answer: B) Startup India
   • Solution: The National Startup Award 2025, under Startup India, recognized 46 startups.
6. What is India’s merchandise export target by 2030?
   • A) $500 billion
   • B) $1 trillion
   • C) $750 billion
   • D) $2 trillion
   • Answer: B) $1 trillion
   • Solution: The ministry aims to achieve $1 trillion in merchandise exports by 2030.
7. Which trade agreement was advanced in 2025?
   • A) India-US FTA
   • B) India-UK CETA
   • C) India-EU FTA
   • D) India-ASEAN FTA
   • Answer: B) India-UK CETA
   • Solution: Negotiations for the India-UK Comprehensive Economic and Trade Agreement progressed in 2025.
8. Which framework secures critical minerals for India?
   • A) WTO
   • B) IPEF
   • C) G20
   • D) BRICS
   • Answer: B) IPEF
   • Solution: The Indo-Pacific Economic Framework (IPEF) helps India access critical minerals from countries like Australia and Chile.
9. What was the FDI inflow to India from 2014 to 2024?
   • A) $500 billion
   • B) $667 billion
   • C) $800 billion
   • D) $1 trillion
   • Answer: B) $667 billion
   • Solution: DPIIT reported $667 billion in FDI inflows during 2014-2024.
10. Which ministry portal provides scheme information?
    • A) myScheme
    • B) PM Gatishakti
    • C) e-NAM
    • D) GeM
    • Answer: A) myScheme
    • Solution: The myScheme portal (www.myscheme.gov.in) offers access to government schemes, including those under the Ministry of Commerce and Industry.

Conclusion

The Ministry of Commerce and Industry is a cornerstone of India’s economic framework, driving trade, industrial growth, and innovation. Since its re-creation in 1999, it has spearheaded initiatives like Make in India, Startup India, and global trade agreements, significantly boosting exports, FDI, and job creation. Despite challenges like trade barriers and regional disparities, the ministry’s vision of achieving a $1 trillion export target by 2030 and fostering sustainable industrial growth positions India as a global economic leader. For more details, visit https://www.commerce.gov.in or https://dpiit.gov.in.[](https://www.commerce.gov.in)[](https://dpiit.gov.in/)

Sources: Official websites (commerce.gov.in, dpiit.gov.in), government press releases, and verified reports.