Recent studies point out that small producers 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 modernisation of technology, and (c) timely availability of credit at reasonable interest rates. Explain how these three things would help Indian producers.
Answers
Explanation:
Progress in these areas will help in following ways
a) Better Road will lead to the quicker means of transport of raw material and products.
Better power results in more production in less time
Water is a necessity of every sector be it small or large producers. It helps in efficient working especially in industries like beverages.
More raw material more production
Marketing results in more sales which in turn increases profit
Information technology is an effective means of promotion and marketing these days
b) Modernization of technology has resulted in better production techniques which result in more quicker production to meet ever increasing demands
c) Businesses work on funding either they are small or large. So, timely credits will help in expanding the business and timely production of goods
Answer:
(a) Better infrastructure will help them to work more efficiently and timely so that they can compete with foreign companies in the market.
(b) Better technology will help the producers to create better quality products efficiently at cheaper rates.
(c) Better finance will enable them to run their production smoothly without any delays, thus improving their competitiveness.
MNCs will not be interested in investing in these because the Indian producers will then compete with them as equals in the same market, thus reducing their market share.
Government must make these facilities available, as they have to provide better facilities for producers as a social responsibility. Government can take many other steps to better facilitate matters by reducing the procedures, i.e., ‘red tape’ and remove the corruption which is rampant in their offices. Further, they can provide single-window clearance for people wanting to set up production units so that the intending entrepreneurs are not harassed.