UPSC Prelims 2002·GS1·economy·economic sectors and development

Which one of the following committees recommended the abolition of reservation of items for the small-scale sector in industry?

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Last updated 8 Jul 2026, 4:39 pm IST
  1. AAbid Hussain CommitteeCorrect
  2. BNarasimham Committee
  3. CNayak Committee
  4. DRakesh Mohan Committee

Explanation

The Abid Hussain Committee on Small and Medium Enterprises, which submitted its report in 1997, recommended the abolition of the policy of reserving specific items for exclusive manufacture by the small scale sector. The committee argued that reservation prevented small units from achieving economies of scale and upgrading their technology. It suggested that instead of protection through reservation, the focus should be on providing support through credit, infrastructure, and technology to make small industries globally competitive. Other options like the Narasimham Committee focused on banking reforms, the Nayak Committee on credit flow to small units, and the Rakesh Mohan Committee on infrastructure development.

economy: Which one of the following committees recommended the abolition of reservation of items for the small-scale sector in in
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