Govt removes last 20 items reserved for production by MSMEs

Our Bureau New Delhi | Updated on January 23, 2018 Published on April 13, 2015

Says de-reservation will open up the products for investment, bring better tech

Fireworks, safety matches, bread, wood and steel furniture and agarbattis are among the 20 items that will no longer be exclusively produced by micro, small and medium enterprises (MSMEs).

The government on Monday removed the remaining 20 items from the original list of over 800 items reserved for exclusive production by the MSME sector, thus bringing to an end a policy regime being followed since the 1960s to promote and facilitate the small sector, considered a big employment generator. The de-reservation is being done “to encourage greater investment, incorporate better technologies, standard and branch building and enhance competition in Indian and global markets for these products,” a Commerce and Industry Ministry statement said.

It said “there is no prima facie justification for continuation of reservation of manufacturing in the MSME sector since such reservation may inhibit the possibilities based on technologies, economy of scale, etc. vis-à-vis the imported items.” The 20 items include pickles & chutneys, mustard oil (except solvent extracted), groundnut oil (except solvent extracted), wooden fixtures, exercise books and registers, wax candles, laundry soap, glass bangles, steel almirah, rolling shutters, steel chairs and tables, padlocks, stainless steel and aluminium utensils.

The Ministry said an Advisory Committee constituted under Section 29B(2C) of the Industries (Development & Regulation) Act, 1951 on de-reservation periodically evaluates products /items reserved for exclusive production by micro and small enterprises.

“India has opened up its economy since 1991 through a forward looking policy which led to de-licensing of items. Over the years, list of items reserved for manufacture by MSME sector has been reduced from over 800 to 20,” the statement said.

Published on April 13, 2015
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