Recent studies point out that small producers in India need three to compete better in the market (a) better roads, power, water, raw material, marketing and information network (b) improvement and modernization to technology (c) timely availability to credit at reasonable interest rates.
(a) Can you explain how these three things would help Indian producers?
(b) Do you think MNCs will be interested in investing in these? Why?
(c) Do you think the government has a role in making in these facilities available? Why?
(d) Can you think of any other step the government could take? Discuss.
Answers
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
Agriculture
Explanation:
Better roads, power, water, raw material, marketing and information network, improvement and modernization to technology and timely availability to credit at reasonable interest rates will help the agricultural sector tremendously. They will be able to produce more and also market them to buyers all over the world, thus improving their profits.
The MNCs will not interested in investing in the infrastructure projects of India, as they are long-term and heavy capital investments with little or no profits.
Yes, the government has a role in making these facilities available. Government is responsible for the development of our country by investing in the infrastructure and support system for Indian industries. Agriculture is the backbone of India, so the government must do everything to support this sector from the tax money collected from the citizens.