New Delhi, Mar 20 (KNN) Lower budgeted spending, underutilisation of funds under intellectual property right (IPR) programmes and decline in overseas patent filings by Indian entities are among the key concerns raised by the Department-Related Parliamentary Standing Committee (DRPSC) on Commerce in its 196th report on the Demands for Grants (2026–27) for the Department for Promotion of Industry and Internal Trade (DPIIT).
The DRPSC chaired by TMC MP Dola Sen highlighted several key issues while reviewing budget allocations, utilisation trends and progress across key initiatives, including industrial corridors, Make in India, startups, intellectual property rights (IPR), and ease of doing business.
Budget Gaps and Utilisation Issues
The Committee noted a nearly 40 per cent increase in DPIIT allocation but stressed the need for outcome-based utilisation and stronger monitoring.
It flagged a funding shortfall of about Rs 4,610 crore (around 28 per cent) against projected demand, warning of potential impact on infrastructure projects and major schemes.
While past utilisation has been strong, it pointed to lower spending in 2025–26 and called for more efficient use of funds.
Industrial Growth and Policy Priorities
The panel emphasised accelerating infrastructure projects, strengthening industrial corridors, and integrating micro, small and medium enterprises (MSMEs) into value chains.
It also recommended developing agro-based and labour-intensive industries, and exploring a Capital Expenditure Efficiency Framework to prioritise high-impact projects.
IPR and Innovation Concerns
The Committee highlighted under-utilisation of funds under IPR programmes and delays in patent processing, with long timelines for examination and disposal.
It noted a decline in overseas patent filings by Indian entities and recommended incentives for global filings, improved examiner capacity, and measures to enhance commercialisation of patents.
Proposals included a Patent Commercialisation Fund and a simplified patent framework for MSMEs and startups.
Schemes and Sectoral Issues
Concerns were raised over underfunding or delays in key schemes, including startup funding programmes, plug-and-play industrial parks, and the Footwear, Leather and Accessories Development Programme (FLADP).
The Committee also flagged slow progress in the proposed Startup Fund of Funds 2.0 and low utilisation in certain production-linked incentive (PLI) schemes.
Ease of Doing Business and Reforms
While acknowledging progress in reforms, the Committee stressed the need for outcome-based improvements and last-mile implementation.
It recommended full integration of states with the National Single Window System and stronger inter-ministerial coordination to streamline approvals and compliance.
(KNN Bureau)
