Micro and small enterprises will continue to enjoy exclusive manufacturing rights over 21 items such as PVC pipes, rolling shutters,steel furniture, padlocks, laundry soaps and utensils. The government has deferred its earlier plan to allow manufacturing of these items by large firms from April 1.
According to an official in the ministry of micro, small and medium enterprises, the government deferred its plan to free the products as this would have exposed small and medium enterprises to tough competition from large firms.
"The issue of reservation or de-reservation of manufacturing items from the small and medium sector list is examined on a continual basis by the an advisory committee. The committee has decided against any de-reservation in 2009-10 due to the current economic downturn," he said, requesting anonymity.
Freeing manufacturing items from the reserved list would mean large firms can also manufacture these products without fulfilling export obligation.
The ministry decided to continue protecting small manufacturers for some more time ignoring recommendations of its own sponsored study.
Source:-(06-Mar-09),Economic Times
According to an official in the ministry of micro, small and medium enterprises, the government deferred its plan to free the products as this would have exposed small and medium enterprises to tough competition from large firms.
"The issue of reservation or de-reservation of manufacturing items from the small and medium sector list is examined on a continual basis by the an advisory committee. The committee has decided against any de-reservation in 2009-10 due to the current economic downturn," he said, requesting anonymity.
Freeing manufacturing items from the reserved list would mean large firms can also manufacture these products without fulfilling export obligation.
The ministry decided to continue protecting small manufacturers for some more time ignoring recommendations of its own sponsored study.
Source:-(06-Mar-09),Economic Times
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