New Delhi: Government today announced it has de-reserved 14 more items meant to be exclusively manufactured by the small scale units, in a move to enable them compete globally.
With the latest tranche of de-reservation, only 21 items remain exclusive for the SSI units. The process of dereservation, which was accelerated since 2005, is nearing completion.
“From 2005 onward, government has de-reserved 579 items,” a commerce ministry statement said here adding the decision has been taken to “enable Indian industry to compete with imports and to achieve economies of scale”.
After removal of the quantitative restrictions in 2001, India opened imports of all but a few strategic goods, making the SSI reservation redundant.
This resulted in a situation where an item could not be made by a large-scale firm, but the domestic SSI unit was made to compete against cheap imports from countries like China, which enjoy economies of scale.
A manufacturing unit, with investment between Rs25 lakh and Rs5 crore in the plant and machinery, is termed as small- scale enterprise.
The items removed from the list last week, include ground and processed spices (other than spice oil and Oleo resin spices), full PVC footwear chappals, sandals and shoes, polythylene films (with less than 0.1 mm thickness), metallic doors, windows and ventilators among others.