2. As per Liberalization, there was reservation for
industries.
Answers
Explanation:
Since the liberalization and deregulation of the Indian economy in 1991, most industries have been exempt from obtaining an industrial license to start manufacturing in India. Government attention is reserved only for those industries that may impact public health, safety, and national security.
In India, industrial licenses are regulated by the IDRA, 1951 Act, and are approved by the Secretarial of Industrial Assistance (SIA) on the recommendation of the licensing committee.
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The provisions of the Act restrict a licensed industrial undertaking from manufacturing a new article unless the license has been renewed or a new license has been obtained to include the new article.
Industries that require industrial licensing for manufacturing in India include:
Industries under compulsory licensing; and,
Industrial undertakings attracting location restrictions. The licensing provision also applies to the expansion of the existing industrial units.
Removal of manufacturing curbs on products previously reserved for MSMEs
Earlier, large industries that manufactured items that were exclusively reserved for Micro, Small, and Medium Enterprises (MSME) also needed to obtain an industrial license.
MSMEs were previously known as Small Scale Industry (SSI). The provision was aimed at protecting indigenous manufacturers from unequal competition with large scale industries.