In India, the present policy of encouraging growth of small scale industries is based on several promotional measures, one of which is reservation of products for exclusive manufacture in the small scale sector. Large/Medium units can, however, manufacture such reserved items provided they undertake to export 50% or more of their production. The reason for special emphasis on this sector is that it plays a vital role in the growth of the country. It contributes almost 40% of the gross industrial value added in the Indian economy. The opportunities in the small-scale sector are enormous due to the following factors:-
Less Capital Intensive
Extensive Promotion & Support by Government
Reservation for Exclusive Manufacture by small scale sector
Funding - Finance & Subsidies
Machinery Procurement
Raw Material Procurement
Manpower Training
Technical & Managerial skills
Tooling & Testing support
Reservation for Exclusive Purchase by Government
Export Promotion
Growth in demand in the domestic market size due to overall economic growth
Increasing Export Potential for Indian products
Growth in Requirements for ancillary units due to the increase in number of greenfield units coming up in the large scale sector. Small industry sector has performed exceedingly well and enabled our country to achieve a wide measure of industrial growth and diversification
Criteria For Reservation
Reservation of items for exclusive manufacture in SSI sector is statutorily provided for in the Industries (Development and Regulation) Act, 1951. The issue of reservation/de-reservation of product is examined on a continual basis by an Advisory Committee on Reservation constituted under the Act, which is presently headed by the Secretary (SSI) as Chairman. The Reservation Policy has two objectives:-
Ensure increased production of consumer goods in the small scale sector.
Expand employment opportunities through setting up of small scale industries.
The overwhelming consideration for reservation of an item is its suitability and feasibility for being made in the small scale sector without compromising the quality aspect. Accordingly:-
List of 14 items de-reserved on 10th October, 2008
List of 79 items de-reserved on 5th February, 2008
125 Items Dereserved on 13th March, 2007
87 Items Dereserved on 22nd Jan, 2007
180 Items Dereserved on 16th May,2006
108 Items Dereserved on 28th March,2005
85 Items Dereserved on 20th October, 2004
75 Items Dereserved in May, 2002-03
51 Items Dereserved on 20th May,2002
List of Items Dereserved from 1997
Circular on Dereservation
One item de-reserved on 30th July, 2010
List of Items Reserved for Exclusive Manufacture in Micro and Small Sector (As on Date)
(Please also refer to 'Industry and Services' section)
Less Capital Intensive
Extensive Promotion & Support by Government
Reservation for Exclusive Manufacture by small scale sector
Funding - Finance & Subsidies
Machinery Procurement
Raw Material Procurement
Manpower Training
Technical & Managerial skills
Tooling & Testing support
Reservation for Exclusive Purchase by Government
Export Promotion
Growth in demand in the domestic market size due to overall economic growth
Increasing Export Potential for Indian products
Growth in Requirements for ancillary units due to the increase in number of greenfield units coming up in the large scale sector. Small industry sector has performed exceedingly well and enabled our country to achieve a wide measure of industrial growth and diversification
Criteria For Reservation
Reservation of items for exclusive manufacture in SSI sector is statutorily provided for in the Industries (Development and Regulation) Act, 1951. The issue of reservation/de-reservation of product is examined on a continual basis by an Advisory Committee on Reservation constituted under the Act, which is presently headed by the Secretary (SSI) as Chairman. The Reservation Policy has two objectives:-
Ensure increased production of consumer goods in the small scale sector.
Expand employment opportunities through setting up of small scale industries.
The overwhelming consideration for reservation of an item is its suitability and feasibility for being made in the small scale sector without compromising the quality aspect. Accordingly:-
List of 14 items de-reserved on 10th October, 2008
List of 79 items de-reserved on 5th February, 2008
125 Items Dereserved on 13th March, 2007
87 Items Dereserved on 22nd Jan, 2007
180 Items Dereserved on 16th May,2006
108 Items Dereserved on 28th March,2005
85 Items Dereserved on 20th October, 2004
75 Items Dereserved in May, 2002-03
51 Items Dereserved on 20th May,2002
List of Items Dereserved from 1997
Circular on Dereservation
One item de-reserved on 30th July, 2010
List of Items Reserved for Exclusive Manufacture in Micro and Small Sector (As on Date)
(Please also refer to 'Industry and Services' section)
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