Correct Option
The Abid Hussain Committee, constituted in 1997 to review the small-scale industries (SSI) sector, recommended the abolition of reservation of items for SSIs. The committee argued that such reservation hindered the growth, modernization, and competitiveness of the sector, preventing it from achieving economies of scale and integrating effectively with the global economy, especially in light of India's World Trade Organization (WTO) commitments. It advocated for a shift from protectionism to a policy of promotion and support.
Incorrect Options
- Narasimham Committee: This committee focused on reforms in the financial sector, particularly banking, and made recommendations concerning prudential norms, capital adequacy, and interest rate deregulation. It did not address industrial item reservation.
- Nayak Committee: The Nayak Committee (1992) primarily examined the credit needs and financial challenges faced by small-scale industries. Its recommendations centered on improving the flow of institutional credit to the SSI sector.
- Rakesh Mohan Committee: This committee was associated with infrastructure development, particularly in areas like transport, urban infrastructure, and power. Its mandate did not include industrial policy related to item reservation for small-scale industries.