Govt removes remaining 20 items from MSME's exclusive ambit
Now even big corporates can manufacture pickles and chutneys, wooden furniture, exercise books and registers, wax candles, agarbatties and glass bangles that were monopoly of the MSME segment
The union government has removed remaining 20 items like fireworks, safety matches, bread, wood and steel furniture and agarbatties, from the exclusive reserved category for micro, small and medium enterprises (MSMEs). This move will allow big players to manufacture these 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.
In a statement, the Ministry of Commerce & Industry, said, "The policy initiatives have been taken to encourage greater investment, including the existing MSME units, to incorporate better technologies, standard and branch building to enhance competition in Indian and global markets for these products."
The last 20 items are from the original list of over 800 items reserved for exclusive production by the MSME sector. This brings to an end a policy regime being followed since the 1960s to promote and facilitate the small sector, considered a big employment generator.
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.



kapil bajaj

2 years ago

The move is based on an obviously fraudulent assumption and is a further blow to open competition and free market.

It is small scale production (i.e. the so called 'informal economy'), not big companies, that make up the free market and open competition, making available a wide variety of products at every street market across the length and breadth of the country at competitive and highly negotiable prices.

Small producers can do that because they have no power to manipulate market in their favour and so play fair and square, keeping low their costs and the expectation of prices they can charge.

Small production thus works self-regulatedly and has little power to hold the society hostage.

The big companies, on the other hand, will be there not to actually make those products, but to act as capitalistic middlemen in the market in order to extract ever increasing profits.

They will be able to do that either by buying the products in bulk or contract manufacturing or by taking over a number of small producers.

Either way, they will damage competition and the interests of both small producers and customers.

So whatever "greater investment" that the new "policy initiative" promises will be riding on expectations of anti-competitive profits rather than into "better technologies, standard and branch building".

Competition and free market is already being damaged by the so called "organized retailers" whose shelves are stuffed with products made by big business and through contract manufacturing, leaving little space for commodities produced by more efficient and low-cost local producers.

B. Yerram Raju

2 years ago

The next move could be merging the MSME ministry with the Ministry of Commerce and Industry. It is incredible that these items that are now removed could be manufactured by the large industry? Again, through myriad of small units giving them their Brand, eating away the margins that should legitimately go to the small and micro enterprises?

SEBI bars Kolkata-based I-Nova from accessing capital market
Market regulator SEBI on Monday barred Kolkata-based I-Nova Solutions Ltd (INSL) and its directors from accessing the capital market.
"The company shall not mobilize funds from investors. Further, the company and its directors are prohibited from issuing prospectus or any offer document or issue advertisement for soliciting money from the public for the issue of securities, in any manner whatsoever, either directly or indirectly, till further orders," the Securities and Exchange Board of India (SEBI) said in a statement.
It alleged INSL was engaged in fund mobilizing activity through issue of redeemable preference Shares to more than 49 people without complying with the relevant provisions of the Companies Act, 1956 and the DIP guidelines read with ICDR Regulations, 2009.
SEBI said issuing any share or debenture issue beyond 49 people is a public offering issue which requires compulsion to the relevant provisions of the SEBI Act and related acts pertaining to the public issue.
"The company and its directors, are restrained from accessing the securities market and further prohibited from buying, selling or otherwise dealing in the securities market, either directly or indirectly, till further directions," it said.
It has also asked the company and its three directors to submit a full inventory of assets and properties held.
I-Nova's past director, Tapan Pal has also been barred from accessing the capital market.


Nifty, Sensex still on an uptrend – Monday closing report

Nifty will weaken only on a close below 8,750


Last week, we had mentioned that the upmove on the NSE’s CNX Nifty is still strong. The move on the 50-stock index till 11.30am on Monday was without any specific direction. However, then it gathered momentum and started moving higher. Mid-way, again the benchmark started moving lower but it managed regaining strength and closed with gains for the seventh consecutive trading session.
The S&P BSE Sensex opened at 28,955 while Nifty opened at 8,802. Sensex moved from the low of 28,844 to high of 29,073 and closed at 29,044 (up 165 points or 0.57%) while Nifty moved from the 8,762 to 8,842 before closing at 8,834 (up 54 points or 0.61%). Bank Nifty which opened at 18,842, moved from the 18,708 to 18,891 and closed at 18,798 (down 3 points or 0.01%).  NSE recorded a volume of 81.15 crore shares. India VIX rose 1.63% to close at 14.4875.
The index of industrial production (IIP) increased 5% in February 2015 compared with the revised growth of 2.8% in January 2015, Indian government data released after market hours on Friday.
Market was awaiting the data on consumer price index for March 2015. The stock market remains closed Tuesday for Dr Babasaheb Ambedkar Jayanti.
Prime Minister Narendra Modi, on Saturday made a strong pitch for India's permanent membership at the United Nations Security Council (UNSC), and expressed confidence that the world would soon recognize and accept the country's capabilities. The Prime Minister, in his remarks at the Community Reception at the Carrousel de Louvre in Paris, said he was confident, based on his experience of 10 months of his Government, that the hopes and expectations of all Indians would be fulfilled.
Pledging a stable and transparent tax regime, PM Modi also wooed global investors, saying development is "not a mere political agenda" but an "article of faith" and sought international support to achieve the objectives crucial for growth.
Government has shortlisted about a dozen state-run units including IOC, National Fertilizers, MMTC, Hindustan Copper and ITDC for stake sale to achieve the current fiscal's disinvestment target of Rs41,000 crore.
Coming back to Indian stock market, Bayer Cropscience (18.73%) was the top gainer in ‘A’ group on the BSE. It hits 52-week high today. Bharat Electronics (4.94%) was the top loser in the group.
Bharti Airtel (3.18%) was the top gainer in the Sensex 30 pack while M&M (2.58%) was the top loser in the pack.
On Friday, US indices closed in the green. Except for Asian indices Jakarta Composite (0.80%), KLSE Composite (0.40%) and Nikkei 225 (0.01%) all the other indices closed in the green. Hang Seng (2.73%) was the top gainer.
China's exports slid 15% from a year earlier in March while imports dropped 12.7%, according to data released today.
Japanese core machinery orders fell 0.4% in February on a seasonally adjusted basis from the previous month. The fall followed a 1.7% decline in January.
Economic growth of developing markets in the East Asia-Pacific region is likely to improve this year in most countries but slow as a whole due to a drag exerted by China, the World Bank reportedly said. Growth in the developing markets of the East Asia-Pacific region, including China, Indonesia and the Philippines, will slow to 6.7% this year from 6.9% in 2014, reports indicated.
European indices were showing mixed trading while US Futures were trading lower.


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