Government removes 20 items from exclusive manufacturing by

MSME
NEW DELHI: Opening up small business units making products like pickles and candles for
large investors, government today removed all restrictions that reserved 20 such items for
exclusive manufacturing by the MSE sector.
Manufacturing of 20 products including bread, wooden furniture, wax candles, laundry Soap,
safety matches, fire works and agarbatties were reserved for micro and small enterprises so far.
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 Commerce and Industry
Ministry said in a statement.
It said that over the years the list of items reserved for manufacture by MSME sector has been
reduced from over 800 to 20.
The advisory committee in its meeting in October last year noted that with the import
liberalisation, all remaining items are allowed for imports.
"Thus, there is no prima facie justification for continuation of reservation of manufacturing in the
MSE sector since such reservation may inhibit the possibilities based on technologies, economy
of scale, etc. vis-a-vis the imported items," it said.
"Government of India...has decided to deserve remaining 20 items presently reserved for
exclusive manufacture by MSE sector," it added.
The other items include pickles and chutneys; mustard oil; ground nut oil; wooden furniture and
fixtures; exercise books and registers; glass bangles; steel almirah; rolling shutters; all types of
steel chairs, tables and furniture; padlocks; stainless steel utensils and aluminium utensils.

MSMEs to play greater role in economic revival: Kalraj Mishra

NEW DELHI: The micro, small and medium enterprises (MSME) sector is set to emerge as a
potent tool to exploit the demographic dividend enjoyed by India and will play a "much larger
role" in the revival of the country's economy, MSME Minister Kalraj Mishra said today.

"The MSME sector, owing to its inherent characteristics and innate strengths, will play a much
larger role in revival of Indian economy and emerge as a potent tool to exploit the demographic
dividend enjoyed by the nation at present," the Minister said while addressing a symposium on
MSME sector here.
Moreover, the government's 'Make in India' campaign and its emphasis upon increasing the share
of manufacturing sector in GDP from the present 14-15 per cent to 25 per cent by 2022 have the
potential of transforming the fortunes of the sector, the Minister said.
MSMEs are critical to the country's manufacturing sector and foreign trade, Mishra said.
The sector accounts for about 45 per cent of country's manufacturing output and over 40 per cent
of exports.
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