An Advisory Committee constituted under Section 29B(2C) of the Industries (Development & Regulation) Act, 1951 on de-reservation periodically evaluates products /items reserved for exclusive production by Micro and Small Enterprises. India has opened up its economy since 1991 through a forward looking Policy which led to de-licensing of items. Over the years list of items reserved for manufacture by MSE Sector has been reduced from over 800 to 20. The Advisory Committee in its meeting, held on 20.10.2014, noted that with the import liberalization, all remaining items are allowed for imports. Thus, there is no prima facie justification for continuation of reservation of manufacturing in the MSE Sector since such reservation may inhibit the possibilities based on technologies, economy of scale, etc. vis-à-vis the imported items.

On the recommendation of Advisory Committee, Government of India vide Notification S.O. 998 (E) dated 10.04.2015 have decided to deserve remaining 20 (Twenty) items presently reserved for exclusive manufacture by MSE Sector. Accordingly following items are de-reserved:-

(i)Pickles and Chutneys, (ii) Bread, (iii) Mustard Oil (except solvent extracted), (iv) Ground Nut Oil (except solvent extracted), (v) Wooden furniture and Fixtures, (vi) Exercise Books and Registers, (vii) Wax Candles, (viii) Laundry Soap, (ix) Safety Matches, (x) Fire works, (xi) Agarbatties, (xii) Glass Bangles, (xiii) Steel Almirah, (xiv) Rolling shutters, (xv) Steel chairs - all types, (xvi) Steel tables - all other types, (xvii) Steel Furniture - all other types, (xviii) Padlocks, (xix) Stainless steel utensils, (xx) Domestic utensils - Aluminium.

The above policy initiatives have been taken to encourage greater investment, including the existing MSME units, to incorporate better Technologies, Standard and Branch Building to enhance Competition in Indian and Global markets for these products.

De reservation of manufacturing items expands market access and invites investment by allowing wider production of previously reserved goods. On the Advisory Committee's recommendation under Section 29B(2C), the Government issued a notification de reserving twenty items previously reserved for exclusive manufacture by the MSE sector, reasoning that import liberalisation and technological and scale considerations negate continued reservation; the de reservation aims to encourage investment, technology adoption and enhanced competition in domestic and global markets for those goods.