Module: General Practice
Q177: Which committee’s recommendations, submitted in 1997, were instrumental in the major policy shift that led to the gradual "de-reservation" of items exclusively reserved for manufacture by the Small Scale Industry (SSI) sector?
✅ Correct Answer: B
The Abid Hussain Committee (1997) was the pivotal body that recommended the abolition of the policy of reservation of items for the Small Scale Industry (SSI). The committee argued that protectionism (reservation) was hindering growth, export competitiveness, and technology upgradation.
Following this, the government started a phased de-reservation policy.
From over 800 items reserved in the 1990s, the list was gradually pruned.
By 2015, the reservation list was virtually emptied (except for a few items which were also eventually de-reserved), shifting the policy focus from "Protection" to "Promotion and Competitiveness."
Following this, the government started a phased de-reservation policy.
From over 800 items reserved in the 1990s, the list was gradually pruned.
By 2015, the reservation list was virtually emptied (except for a few items which were also eventually de-reserved), shifting the policy focus from "Protection" to "Promotion and Competitiveness."