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Our Bureau

New Delhi, Feb. 27

The micro and small enterprises sector, which accounts for 39 per cent of the country's manufacturing output, can achieve sustained higher growth by enhancing its technological capabilities and improving product and service quality, noted the Economic Survey 2006-07. The sector, which employs 29.5 million people, can source improved manufacturing techniques and management processes with greater ease, said the Survey.

A package for promotion for these enterprises has been approved recently to address concerns in the areas of credit, cluster-based development, infrastructure and technology. The reasoning of reserving items for domestic production exclusively in the small-scale sector, particularly when such products can be freely imported from large-scale production units abroad has come under questioning. The efforts for reservation reached their peak in 1984 and since then there has been a gradual relaxation in the reservation policy. The number of items reserved for the sector stood at 239 as on January 22.

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