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The government has taken out several items on 13.04.2015 from the list of items reserved for small scale sector under the Industries (Development and Regulation) Act 1951 and subsequent amendments.  Earlier proviso was that any item on the reserved list which was desired to be manufactured by a large scale industry, then it had to obtain a licence and the licence was granted on the condition of 50% output to be exported.  The government has also decided to take out from the reserved list the remaining 20 items which means there will be not item left for exclusively manufacture by SSI units which are now re-christened MSE or Medium and Small Sector (sometimes also referred to as MSME or Micro, Small and Medium Enterprises).


The objective of this total deregulation obviously is to allow for efficiency in manufacturing by way of economies of scale and introduction of new technology.

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