Govt scraps MSME exclusive items list

Move allows large-scale production and import of items on the list

The government has done away with the final list of items, ranging from pickles to firecrackers, which were reserved only for the MSME (micro, small and medium enterprises) sector for manufacturing. This has been done to boost investment and technological advancement. With this move, the government has dereserved all items.

According to a press release issued by the ministry of commerce and industry, the move was 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 government has been reducing the number of items in the list progressively since 1991. Over the years, the list was reduced from 800 items to 20 at present.
 

Besides allowing large-scale manufacturing, the move will also allow import of pickles, mustard oil, groundnut oil, wooden furniture, fire works, glass bangles, safety matches, steel chairs, rolling shutters, wax candles and laundry soaps among others.

This was done on the recommendations of an advisory committee that took the decision to scrap in October last year. "There is no prima facie justification for continuation of reservation of manufacturing in the MSE sector, since such reservation might inhibit the possibilities based on technologies, economy of scale, etc., vis-à-vis the imported items," the release stated.