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Dereservation in SSI Sector to enable global competitiveness, CII
Feb '08
Welcoming the Government of India (Ministry of MSME) move for the dereservation of 79 items from the list of 114 items reserved for exclusive manufacture by the SSI, Mr Sunil Bharti Mttal, President, CII added that it would enable the Indian industry to compete with imports, achieve economies of scale and create job opportunities.

The decline (from 836 in 1994 to 35 in 2008) in the number of Reserved items has been gradual and in line with the CII stand for phased & gradual dereservation. Number of items de-reserved in 2005, 2006 and 2007 were 108, 180 and 212 respectively.

Though the last few Union Budgets have addressed the issue of Reservations and have started the process of Dereservation, however considering that all the items in the Reserved category are in the Open General Licence (OGL) category, an expedited approach based on complete Dereservation was recommended by CII, as it would help facilitate :
1. Global benchmarking as an incentive for the SSI to compete in the international markets, while upgrading their Quality & Technological standards.

2. Achieving Economies of scale in production, for ensuring cost competitiveness, in the global markets.

3. Tie-ups with Multinationals for accessing skills, technology, finances & even export markets.

4. Emergence of the true Indian Entrepreneurial class.

The 79 items that have been De-reserved broadly include the following categories : food and allied items, wood, wood products, paper, paper product, plastic product, organic chemicals, drugs, drug intermediates, other chemicals, chemical products, glass, ceramics, mechanical engineering and electrical machines, appliances and apparatus.

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