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.

(a) 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 give a lot of opportunities and openings for the domestic producers to reach out beyond the domestic market. Producers can sell their commodities to buyers from around the world.

(b) The MNCs would not be interested in investing in these fields. They will be interested to invest their money in assets like land and buildings, plant and machinery and others for earning profits. Also, the development of these facilities would help Indian producers. Thus the MNCs will not be interested to invest and improve these facilities.

(c) Yes, the government has a role in making these facilities available. Government is the only body that would be able to provide these services at a cheap rate to everyone. All these facilities will give a lot of opportunities and openings for the domestic producers to reach out beyond the domestic market. Producers can sell their commodities to buyers from around the world. This will enable them to increase the national income.

(d) The government has a role in making facilities like better roads, power, water, raw material, marketing and information network, improvement and modernization to technology and timely availability to credit at reasonable interest rates available. Government is the only body that would be able to provide these services at a cheap rate to everyone. Other than these facilities, the government should also make administration changes to reduce corruption and lobbying, promote domestic products and provide subsidies and assistance to domestic industries.