Which sectors are reserved for MSME industries today? Discuss in the light of recent government policy.
Published: February 6, 2016
Reservation and de-reservation of the products for particular sector is done under the Industries (Development& Regulation) Act, 1951.Furthermore, the government kept abolishing the reservation of all items and as of today not a single item is reserved for small industries.
The decision to de-reserve the small industries was correct move as per current circumstances. The small sector industries on account of financial constraints and less globalised are not able to manufacture products with the help of latest technologies; this in turn deteriorate the quality of products and also increases the prices; thus leading to low competition in market compared to other products.
Model Questions Category: 075 - Changes in Industrial Policy and Their Effects On Industrial Growth