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.