BUSSINESS QUESTIONNAIRE-ICRR09

India
Competition & Regulation Report
(ICRR) IInd Cycle
BUSINESS-QUESTIONNAIRE
(India Competition Perception Survey)


*Mandatory Fields

*Name:         


*Organisation:

Address:        

*City/State:   

*Email:          


*Please
identify the stakeholder group you belong
to, by clicking the radio button
  against relevant category:

Policy-maker/Government
official (parliamentarians, central
or state government officials, regulators)



Business
(manufacturers, service providers,
representative of business chamber,
business associations, service provider’s
association)



Civil
society organisations (consumer
organisations, advocacy groups)



Academia
(academic staff at universities/business
schools, researchers, representative
of research institutes)



Media
(economic journalists, editors of
newspapers and business magazines)



Other
experts/practitioners (please
specify)



Each
question below has various options.
We request you to please give your response
by selecting the most appropriate option:


PART:A

I.
Level of Competition that Prevails in
the economy


1) How important do you think is the
role of competition in reducing price of
the following products?

Product

No
choice

Some
choice

Enough
choice

Can’t
say/don’t know

Toothpaste









Coffee







Wrist
watch








Electrical
fan








Refrigerator







Colour
Television








Computer







Bicycle







Motor
cycle








Car
(small segment)








 


2) Suppose, you wish to switch
suppliers, how easy is to do so? Answer
this question for all the services
listed below:


Service


No option to change supplier


Very Difficult


Difficult

Easy

Very Easy

Can’t say/don’t know

Internet/leased circuit
service













Accounting/auditing service




 









Management Consultant service




 









Courier service




 









Advertising agency service




 









3) Consider the manufacturing sector in
India; please tell us if any of the
following issues are a problem for
starting a manufacturing unit. Please
indicate a separate response for
small-scale and large-scale units.



Issue


Small-scale units


Large-scale units

No obstacle at all

Manage
able

Cumber
some


Very cumber
some


Can’t Say/ Don’t know

No obstacle at all

Manage
able

Cumber
some

Very cumber
some

Can’t Say/ Don’t know

Approval under land laws

















Approval under labour laws

















Pollution and environmental
clearance

















Telecom connection

















Electrical connection

















Water connection

















Construction-related permit

















Operating license/permit

















Finance

















Private anti-competitive
practices (e.g. private entry
barriers)

















4) Consider the manufacturing sector;
please tell us if any of the following
issues are a problem for the
operation/running of a manufacturing
unit. Please indicate a separate
response for small-scale and
large-scale units.



Issue


Small-scale units


Large-scale units

No obstacle at all

Manage
able

Cumber
some


Very cumber
some


Can’t Say/ Don’t know

No obstacle at all

Manage
able

Cumber
some

Very cumber
some

Can’t Say/ Don’t know

Electricity supply

















Transportation (inbound and
outbound)

















Tax administration/
inspections by Tax
inspectorate

















Labour Regulations/
inspections by labour
inspector

















Environment Regulations/
inspections

















Financing (access/ cost of
financing)

















Policy/regulatory Uncertainty

















Anti-competitive practices
(e.g. in purchasing or selling
goods)
















II.
Nature of Practices that prevail in
the market place

5)
These days sellers are running several
promotion schemes to attract customers.
For example, ‘gift assured with every
purchase’, ‘buy 2 and get 1 free’, ‘summer
bonanza’, ‘monsoon hungama’, and the
list goes on. It seems to have become
a competitive necessity to run such
schemes to realise sales, profits and
market share objectives. Please indicate
your opinion on such schemes:

They
are in the interest of consumers
They
do not deliver promised rewards
and are designed to dupe consumers
Some
schemes are good, some are designed
to dupe consumers
Can’t
say/don’t know








6)
Often doctors’ ask patients to get diagnostic
tests done from prescribed laboratories.
Doctors argue that this is a way to
ensure authenticity and quality. Do
you think this practice (also called
‘tied selling’) is appropriate?

Yes,
such advice is an effective
way to ensure quality, since
reliability of diagnostic tests
is a matter of concern



No,
this is just a means to make
easy money and shuts out choice
for patients who end up paying
higher prices



Not
always, some doctors do it to
ensure quality, while others
do it to make money



Can’t
say/don’t know



7)
Often schools ask students to buy uniforms
from prescribed shops/sellers. Schools
argue this is done to maintain uniformity
and quality. Do you think this practice
(also called ‘tied-selling’) is appropriate?

Yes,
this helps schools in maintaining
uniformity and makes the items
easily available to students


No,
this is just a means to make
profit and shuts out choice
for students who end up paying
prices higher than that prevailing
in the open market


Not
always, some schools do it to
ensure uniformity and quality,
while others do it for making
extra money


Can’t
say/don’t know


8)
Presently certain professions (medical,
accounting, legal) restrict advertising
by their members. Do you think such
restrictions are justified?

Yes,
such restrictions protect the
public from
misleading information


No,
restrictions on advertising
favours established firms, restricts
entry
and has anti-competitive effects


No,
instead of outright bans, clear
parameters should be defined
for truth in advertising, ruling
out inducements, misleading
claims, etc.


Can’t
say/don’t know


9)
Certain industries in the country are
characterised by one or two dominant
firms. For example, Reliance holds more
than 50 percent market share in polyester
staple fibre, Grasim holds about 90
percent market share in Viscose Staple
Fibre. Please indicate if you think
such dominant status is a matter of
concern

Yes,
emergence of dominant position
is a matter of concern
No,
there is nothing to worry; market
forces provide enough competitive
threat
Can’t
say/don’t know






10)
The two products mentioned above: polyester
staple fibre and viscose staple fibre
are key intermediates in cotton textiles.
There are complaints of excessive pricing
by users of these intermediates. Similarly,
builders’ complain of excessive pricing
by cement manufacturers. How often do
you think businesses face anti-competitive
practices while purchasing raw materials
or intermediates?

There
are many such cases of anti-competitive
practices faced by business
There
are occasional cases of such
anti-competitive practices faced
by business
There
are no such cases
Can’t
say/don’t know








11)
In pharmaceuticals, there are often
complaints that pharmaceutical companies
have to give a huge margin to druggists
to get their products sold. How often
do you think businesses face anti-competitive
practices while selling their goods
or services?

There
are many such cases of anti-competitive
practices faced by business
There
are occasional cases of such
anti-competitive practices faced
by business
There
are no such cases
Can’t
say/don’t know








III.
Awareness/Knowledge on Competition and
Regulatory Issues

12) 
Suppose the Department of Posts is
granted a monopoly in carrying letters
less than 300 grams (which is presently
under discussion). After acquiring this
monopoly, suppose the Department
increases significantly the charges for
carrying such letters. Please indicate
if the Competition Commission of India
is empowered to investigate such action
by the Department of Posts or for that
matter any Departmental Enterprise that
behaves in an anti-competitive manner.


Yes

No
Can’t
say/don’t know






13)
Suppose Dr Reddy’s Laboratories Ltd and
Ranbaxy Laboratories Ltd enter into a
joint venture to manufacture a
particular drug, which is not produced
by any other company in the country.
Both companies fix the price of the drug
and claim efficiency in production.
Suppose there are complaints that the
drug price is high. Do you think that
this practice comes under the purview of
the Competition Act?


Yes

No
Can’t
say/don’t know






14)
Suppose you want to transport goods
from one town to another. You find that
all booking agents in your town are
quoting the same price, which you consider
to be on the higher side. There are
similar practices prevalent at the local
level: cartelisation in car rentals/auto
rickshaw, high tariffs charged by private
transporters to ply in certain areas,
truck operators’ cartel, etc. Do you
think the mechanisms (e.g. competition
authority, consumer forums, any other
agency at state/sub-state level) that
exist to address such practices are
effective?

Yes,
always
Yes,
sometimes
No,
never
Can’t
say/don’t know








15)
Are You
aware of regulators in telecom,
electricity?


Yes

No




16)
What
according to you is the role of a
regulator?


To develop and implement rules
that create a competitive
environment in the market

To implement the Competition
Law

To facilitate business
arrangements
Can’t
say/don’t know








17)
Have you
or your fellow stakeholders ever been
invited to participate in stakeholders
meetings organised by regulators?


Yes

No




18)
If yes,
was
the meeting participatory?


Not at all
 Somewhat
Fully






19) The
attribute of quality of regulation are
independence,accountability,transparency
and  integrity. How can the quality
of regulation be improved? Please rank
these measures on a scale
1-4 (choose only 1, 2 , 3 or 4) in order
of increasing importance.


By making regulatory bodies
more independent

Allocating more budget

Good quality personnel

Reducing political
interference









20)How
would you rank the quality of regulation
in India on a scale of 0-4 (very poor-
excellent)?
Choose only among numbers 0, 1, 2, 3 or
4.


Very poor

Poor

Satisfactory

Good

Excellent










IV.
Nature and Impact of Government policies/measures

21)
Government is considering a proposal
to bring all essential drugs under price
control in order to make them affordable
and accessible, especially to poor people.
Do you think controlling the price of
all essential drugs is the right way?

Yes,
controlling the price of all
essential drugs is the best
option considering that normal
market forces do not operate
in drug delivery, as consumers
do not make choice for medicines;
it is the doctors and retailers
that play important role in
purchase decisions


No,
price control is not required
at all; government should instead
encourage competition with appropriate
monitoring of prices


No,
price control should instead
be restricted to only a few
medicines that have seen excessive
price increase, and others should
be put on a watch list


Can’t
say/don’t know


22)
The above instances show the way in
which government seeks to intervene
in the functioning of markets to uphold
public interest. There are several other
instances (e.g. intervention in pricing
of essential commodities to make them
affordable to ordinary consumers;
giving free power to farmers to provide
support in irrigating fields). While
the overall objective behind such intervention
may be desirable, please indicate if
you think the manner of government
intervention
is right?

Yes,
always
Yes,
sometimes
No,
never
Can’t
say/Don’t know








23)
Is the government neutral among
bidders (public and private) when
granting public contracts?


Private and public sector
players are always given equal
treatment



Private players get equal
treatment only in some cases



Contract terms and conditions
are always loaded in favour of
public sector units

Can’t
say/don’t know


24)
Do you think that the number of
procedures (on average) needed for an
entrepreneur to start a business has
come down within the past five years?


Yes, it has come down
significantly



Yes, there has been some
reduction



No, there is no change



No, the number of procedures
has actually increased


Can’t
say/don’t know


25)
There is presently a trend to appoint
retired/retiring bureaucrats and judges
as regulators. Do you think it is right
to appoint them as regulators?

Yes,
given India’s political-economy
(where line ministers have a
tendency to intervene in regulator’s
functioning), such appointments
allow regulators to maintain
a congenial relationship with
the government and enhances
regulatory effectiveness


No,
this precludes appointment of
professionals and undermines
regulatory effectiveness


Can’t
say/don’t know



PART B:SECTORAL
REGULATION


V. Higher
Education


26) One of the recommendations of
National Knowledge Commission (NKC) of
India is that a university can only be
set up through legislature. Do you think
that this recommendation, if adopted,
will work as an entry barrier for new
universities?


Yes

No




27) Do
you think that free entry and a level
playing field for the private, public
and foreign universities is desirable
for enhancing the access and quality
of higher education?


Yes

No





28)

If yes, how
should  the quality of education be regulated?
Indicate your priorities on a scale of
1-3 by using only integers (1, 2 or 3). 


Strict monitoring of physical
infrastructure such as
buildings, libraries, sports
facilities, teacher- student
ratio etc



Introduction of exit
examinations, testing
students, especially those in
professional courses, on the
output side



By leaving it to market forces
— the survival of the
institution will depend on the
employability of its students


29) In your opinion the
overall quality of technical education on a scale of 0-4 (very poor-
excellent) is:


Very poor

Poor

Satisfactory

Good

Very Good









30) The accreditation of
educational institutions also sends the signal of quality to the market. At
present the National Assessment and Accreditation Council (NAAC), created by UGC,
does the accreditation. In your opinion who (choose integer values 1, 2 or 3
where a larger magnitude denotes greater suitability) should be given the
authority to accredit the institutions?


NAAC should continue



Private accreditation agencies
of international repute which
are to be short listed by the
regulator



Institution can hire any
credit rating agency of its
choice


31) For good quality education
we need good infrastructure and highly paid faculty that involves heavy cost. To
recover such costs the institutions have to charge higher fees. But the
government regulates fees to render more equitable access and does not provide
much leeway to the institution. In your opinion what is the best way for
achieving the right balance among the issues of access, quality and cost? Use
numbers 1, 2 or 3 to indicate suitability, with a greater magnitude implying
greater suitability


The institutions should be
allowed to charge fees of
their choice from non-poor
students. However, the poor
students should be charged
lower fees, as decided by the
government, and the difference
in fees should be recovered
from the students with higher
capacity to pay



Make subsidized education
loans to needy students easily
available



Same fees should be charged
from all students. The
students can choose the
institutions according to
their paying capacity



VI Power
Sector

32)
The lack of expansion of private
capacity in the power sector, even
after various efforts, can be
attributed to


Lack of level playing field in
public sector and private
sector power generating
companies



The state governments are
neither allowing the rise in
tariffs of subsidized
categories such as agriculture
and domestic, nor they are
releasing adequate subsidies
to cover up the deficits of
SEBs



Industrial consumers are
increasingly adopting captive
generation which impacts the
revenue from a distribution
licensee 



All the above

33)
The network of power supply usually has
the attributes of a natural monopoly as
the costs of setting up multiple
networks are greater than the likely
gains of competition among multiple
operators. What are the ways according
to you (choose integer values 1, 2 or
3,, where a larger magnitude denotes
greater suitability of the method) of
checking monopoly power?


Subject them to close
regulation by an independent
regulator who must fix the
access charges and ensure
non-discriminatory open access
for enabling effective
competition in the content
segment



Develop small power plants in
the local vicinity of housing
complexes so that distance of
transmission is reduced



Both



VII Ports

34) Do
you think that inter-port and
intra-port competition is absent in
India?

Yes No Don’t know






35) If you think that there is
an absence of competition in the port sector, what has been the reason for it?


Poor inland connectivity

Policy regime of protecting
domestic ports against
competitive pressures

Both







36) The Tariff Authority for Major Ports
(TAMP) was set up in 1997 to fix and
revise various port charges to be
collected by private providers of port
facilities. It has comprehensive powers
for fixing tariffs in major ports but
does not have jurisdiction over minor
ports or private ports. It has no other
regulatory functions or powers. All other
powers are vested in the various Ports
Trusts. Do you think there should be one
regulator exercising all regulatory
functions, including tariff setting?


Yes

No

Don’t know







VIII
Agricultural Produce Markets

37) There
are intermediaries in agricultural
produce markets at different stages
between the farm gate and final buyer.
Poor infrastructure and isolated markets
imply that there is a lack of competition
at the farm gate and at other
intermediary stages before the purchase
by the final consumer. Intermediaries
exploit such lack of competition to
generate high profit margins; the result
is a higher retail price than the level
at the farm gate. Regulation and
reduction in the number of intermediaries
is essential for fair prices to farmers
and consumers. In your opinion how can
the chain on intermediaries be reduced?
Please rank the following measures in
terms of increasing effectiveness (choose
numbers 1, 2, 3 or 4).


Encourage competition among
intermediaries through better
infrastructure for physical
connectivity which removes
geographical isolation of
markets and can help bring the
farmer closer to the consumer
and through infrastructure for
storage and credit which
improves the bargaining
position of the farmer and
enables him to invite
competition for his produce



Contract farming which
entitles the farmer to sell a
fixed quantity of a product at
a stipulated time and price to
a buyer



Direct farming or the direct
interaction between farmers
and final buyers at the retail
or wholesale level


All


38) The Agricultural Produce Market
Regulation Act (APMRA) was adopted to
introduce regulated agricultural markets
so that producers get higher prices for
their product. To what extent (choose
numbers 1, 2, 3 or 4) have the regulated
markets succeeded in reducing the chain
of intermediaries and enhancing
competition? 


The markets have not succeeded
at all in ensuring effective
competition and guarding the
producer’s interest due to
inadequate infrastructure



The markets have succeeded
partially in regulating the
conduct of intermediaries but
have not paid any attention to
diminishing the long chain of
intermediaries 



By introducing requirements of
licensing for traders,
regulated markets have
restricted entry for many
traders. Such entry, if
allowed, could have increased
the competition for farm
produce and led to farmers
getting a better price 



All of the above


39) Does licensing for agricultural
traders in agricultural markets actually
harm the farmers by lowering prices?


Yes

No

Don’t know






40)
Could farmers benefit from computer
kiosks which provide information about
prices in various agricultural markets?


Yes

No

Don’t know






THE
SURVEY ENDS HERE…
THANK YOU VERY MUCH FOR YOUR COOPERATION!