Recent studies point out that small producer in India need three things to compete better in the market (a) better roads, power, water, raw materials, marketing and information network. (b) improvements and modernization of technology. (c) timely availability of credit at reasonable interest rates. • Can you explain how these three things would help Indian producers? • Do you think MNCs will be interested in investing in these? Why? • Do you think the government has a role in making these facilities available? Why? • Can you think of any other step that the government could take? Discuss.

Question

Recent studies point out that small producer in India need three things to compete better in the market (a) better roads, power, water, raw materials, marketing and information network. (b) improvements and modernization of technology. (c) timely availability of credit at reasonable interest rates. &#x2022; Can you explain how these three things would help Indian producers? &#x2022; Do you think MNCs will be interested in investing in these? Why? &#x2022; Do you think the government has a role in making these facilities available? Why? &#x2022; Can you think of any other step that the government could take? Discuss.

Philoid · Accepted Answer

These three things will help the Indian producers to compete better in the market as follows

(a) Better infrastructure would lead to time bound execution of the plan and would lead to greater efficiency in the business operation.

(b) Better technology would lead to production of increased quality products that too at a reasonable rate.

(c) Better finance will enable them to adapt according to the requirement of the time – they can invest quickly when demand is increasing in market

MNCs will be interested in investing in these. There are a lot of MNCs

not be interested in investing in these because then it would enable the Indian players to compete with MNCs on equal term, which will then be in contrast to MNCs interest.

Government must ensure that basic infrastructural facilities should be provided, which then would catalyze entrepreneurial spirit. Also government should provide single window clearances for setting up a business in a transparent and time bound manner to curb red tapism.