UPSC Prelims 2002 Q46: Indian Economy – Infrastructure & Industry
Which one of the following committees recommended the abolition of reservation of items
for the small - scale sector in industry?
- (a) Abid Hussain Committee
- (b) Narasimham Committee
- (c) Nayak Committee
- (d) Rakesh Mohan Committee
Answer: (a) Abid Hussain Committee
Explanation
Committee recommending abolition of reservation for the small-scale sector
| Committee | Subject |
|---|---|
| Abid Hussain Committee (1997) | Small-scale industries; recommended doing away with reservation of items for the SSI sector |
| Narasimham Committee | Banking and financial sector reforms |
| Nayak Committee | Credit to small-scale industries (working capital) |
| Rakesh Mohan Committee | Infrastructure development |
The Abid Hussain Committee on the small-scale sector (1997) recommended the abolition of the reservation of items for small-scale industries and the raising of the investment limit. Reservation was removed in stages from 2002 onward.
Answer: (a) Abid Hussain Committee.
Why each option is right or wrong
- (a) CORRECT. The Abid Hussain Committee recommended abolishing reservation.
- (b) Incorrect. The Narasimham Committee dealt with the banking system.
- (c) Incorrect. The Nayak Committee dealt with the credit needs of small industries.
- (d) Incorrect. The Rakesh Mohan Committee dealt with infrastructure.
Key point
Committees: Abid Hussain (SSI 1997), Nayak (SSI credit 1991-92), Narasimham (banking), Rakesh Mohan (infrastructure 1996).
Remember
Abid Hussain Committee: do away with SSI reservation.
Common mistakes
- Choosing Nayak Committee because it also dealt with small industries.
- Linking Narasimham with every reform.
- Mixing infrastructure and industry committees.
Exam tip
Abid Hussain = small-scale industry reservation; Nayak = credit.
Sources
- Ministry of MSME — policy history
- Ramesh Singh — Indian Economy