While Confederation of Indian Industry has hailed it as a progressive measure, Ficci president RS Lodha said the government should now examine other items which are under open general licence (OGL) but reserved for the small scale industry and remove the barriers as soon as possible.
“Many of the items reserved for the SSI sector have been put under the OGL. To continue keeping them reserved for the SSI sector makes little sense,” he said.
“CII is in favour of progressive de-reservation for the SSI sector,” CII said in its reaction, adding at a time when imports are allowed for items in the reserved list, the policy has lost its relevance and size should not debar participation of the domestic companies in this field.
According to Ficci, by reserving certain items for SSIs, the industry is being denied the benefit of achieving the desired economies of scale, and termed this a contradiction of Himalayan proportion.
Reacting to the liberalisation in the SSI sector, Assocham secretary-general Jayant Bhuyan said it is keeping up with the trend of liberalisation and removal of quantitative restrictions. This is indeed a positive move, but we hope the government will finally come with few items in the negative list in the larger interests, he added.