Year end review 2006 - massive stride in small scale sector

29 Dec '06

2 min read

The Small Scale Industries and Agro & Rural Industries sector is one of the vibrant sectors of the Indian economy in terms of employment generation, its share in industrial production and exports.

Over 40 percent of India's gross industrial production and 35 percent of its exports, are generated by the small and medium sector.

With over 3.20 million units in the country, it has been recognized that the rapid growth of this sector will help India in securing a prime position among growing economies.

During January to December 2006, the UPA Government took several steps to boost the Small Scale Industries (SSI) Sector. Some of the salient features are given below:

DE-RESERVATION OF SSI ITEMS
With a view to providing the SSI sector opportunities for technological upgradation and promotion of exports, items reserved for exclusive manufacture by SSI have been de-reserved from time to time.

The de-reservation process involves extensive consultation with all the stakeholders. Based on the consultations with the stakeholders and on the recommendations of the Advisory Committee, various items have been de-reserved from the exclusive list of SSI.

In the Budget Speech of 2006-07, the Finance Minister Shri P.Chidambaram, announced a further de-reservation of 180 items from the list. And accordingly 180 items were deserved during the year. With this the number of items reserved for the SSI sector remained 326.

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