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

(c) timely availability of credit at reasonable interest rates.

1. Can you explain how these three things would help Indian producers?
2. Do you think MNCs will be interested in investing in these? Why?
3. Do you think the government has a role in making these facilities available? Why?
4. Can you think of any other step that the government could take? Discuss.

1. The three things mentioned above will help Indian producers in the following ways:
   1. Efficient transportation facilitates the movement of goods and reduces costs and delivery times.
   2. Reliable electricity, raw material supply and access to clean water are essential for production processes. Uninterrupted power ensures smooth operations of industries.
   3. Access to markets and information networks enables producers to reach customers, understand demand, and adapt their products accordingly.
   4. Improvements and modernisation of technology helps in cost efficient production.
   5. Timely availability of credit at reasonable interest rates empowers Indian producers to thrive and sustain through ups and downs in the business.
2. MNCs will not be interested in investing in these because these would not fetch them direct profit. Also, these improvements will help Indian producers and thus increase their competition.
3. Yes, the government plays a crucial role in building and maintaining infrastructure. Investment in roads, ports, power plants, and water supply benefits all producers. Government usually develops these infrastructure to promote own producers as well as to attract foreign investments through MNCs.
4. Government can take following additional steps:
   1. Invest in vocational training and skill development programs. A skilled workforce enhances productivity and competitiveness.
   2. Encourage research and innovation.
   3. Facilitate exports by simplifying procedures, providing incentives, and negotiating trade agreements.