Bussiness Questionnaire

Last updated on April 18, 2011

India Competition & Regulation Report (ICRR) III Cycle
QUESTIONNAIRE
(India Competition Perception Survey)

Background (Why the Survey?)

India embarked on the path of economic reforms in early 1990s by shifting to market-driven economic policies. The thrust of economic reforms has been to allow for more competition resulting in better quality, lower prices and adequate levels of consumption.

Regulation of markets is however needed under certain circumstances to ensure that their working is not impeded through barriers created by market players i.e. markets continue to offer wide choice, with enough supplies available. Accordingly, changes are being made in the economic governance system of the country. This includes changing government policies/ measures; amending existing legislations or enacting new ones such as a new competition law,Indian Competition Act 2002, amended in 2007 (ICA); establishment of sector regulatory bodies in telecom, electricity, etc. All such measures are designed to ensure that markets function well in the new economic policy regime and yield desired results.

Now that the country is following a policy of market-oriented economic reforms for the past two decades, there is a need to assess the perception of stakeholders about the competition and regulation regimes prevailing in the country and also on the quality of regulation. Accordingly, a questionnaire has been designed to get feedback from stakeholders on the following four broad issues:

Awareness/knowledge regarding competition and regulatory Issues
Assessment of the quality of regulation
Assessment of the level of competition and nature of practices that prevail in the economy
Opinion about the nature and impact of government policies/measures

The questionnaires consist of 58 (objective-type, multiple choice) questions .We thank you in advance for your valued cooperation and assure you of strict confidentiality. Neither your name nor the name of your organisation will be revealed in any document based on this 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)
Sectoral experts/practitioners (please specify)

Each question below has various options. We request you to please give your response by selecting the most appropriate option. Please select only one response by clicking the radio button unless otherwise mentioned.

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?

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

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
Issue	i. No obstacle at all	ii. Manageable	iii. Cumber-some	iv. Very cumber-some	v. Can’t Say/ Don’t know	vi. No obstacle at all	vii. Manageable	viii. Cumber-some	ix. Very cumber-some	x. Can’t Say/ Don’t know
a. Approval under land laws
b. Approval under labour laws
c. Pollution and environmental clearance
d. Telecom connection
e. Electrical connection
f. Water connection
g. Construction-related permit
h. Operating license/permit
i. Finance
j. 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
Issue	i. No obstacle at all	ii. Manageable	iii. Cumber-some	iv. Very cumber-some	v. Can’t Say/ Don’t know	vi. No obstacle at all	vii. Manageable	viii. Cumber-some	ix. Very cumber-some	x. Can’t Say/ Don’t know
a. Electricity supply
b. Transportation (inbound and outbound)
c. Tax administration/ inspections by Tax inspectorate
d. Labour Regulations/ inspections by labour inspector
e. Environment Regulations/ inspections
f. Financing (access/cost of financing)
g. Policy/regulatory Uncertainty
h. Anti-competitive practices (e.g. in purchasing or selling goods)

II. Nature of practices that prevail in the market place

5. Sellers run promotional schemes to attract customers. 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:

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

6. We often face the practice of ‘Tied selling’ (viz., doctors asking patients to get diagnostic tests done from prescribed laboratories/schools asking students to buy uniforms from prescribed shops/sellers). It is argued that this is a way to ensure quality. Do you think that this practice is appropriate?

a. Yes, it is an effective way to ensure quality, since reliability is a matter of concern in these services
b. No, this is just a means to make easy money and limits choice for consumers
c. Not always, sometimes it does help to ensure quality
d. Can’t say/don’t know

7. Presently certain professions (medical,accounting, legal etc.) are restricted from advertising their members/services. Do you think that such restrictions are justified?

a. Yes, such restrictions protect the public from misleading information
b. No, such restriction favours established firms, restricts entry and has anti-competitive effects
c. No, instead of outright bans, clear parameters should be defined for truth in advertising, ruling out inducements, misleading claims, etc.
d. Can’t say/don’t know

8. Certain industries in the country are characterised by one or two dominant firms. Please indicate if you think that such dominance is a matter of concern.

a. Yes, emergence of dominant position is a matter of concern
b. No, there is nothing to worry; market forces ensure enough competition
c. No, it is a natural monopoly due to the nature of the industry/technology
d. Can’t say/don’t know

9.In certain product categories, there are complaints of excessive pricing by users of the intermediate inputs. How often do you think business face anti-competitive practices while purchasing raw materials or intermediate inputs?

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

10. In products like pharmaceuticals or FMCG goods, there are often complaints that producer have to concede sizable profit margins to retailer seller to get their products sold. Do you feel such practices raise the final price for consumers?

a. Yes
b.No, the MRP puts a ceiling on final prices.
c. No, on the other hand there are instances where retailers share a part of that margin with consumers and sell below the MRP.
d. Can’t say/don’t know

III. Awareness/Knowledge on competition and Regulatory Issues place

11. In case a monopolistic supplier increases the service charges/price of products sold, significantly, do you feel that the Competition Commission of India is empowered/will be able to investigate such anti-competitive actions.

a. Yes
b. No
c. Can’t say/don’t know

12. There exist cartels in several sectors of the economy. Do you think that the existing mechanisms (e.g. competition authority, consumer forums, any other agency at state/sub-state level) for addressing such practices are effective?

a. Yes, always
b. Yes, sometimes
c. No, never
d. Can’t say/don’t know

13. Are you aware of regulators in telecom, electricity sectors?

a. Yes
b.No

14. There may exist several tariff/regulatory orders of independent regulators (viz. TRAI). that require enforcement at the local level. Do you think that the regulators have been effective in enforcing orders at the local level?

a. Yes, always
b. Yes, sometimes
c. No, never
d. Can’t say/don’t know

15. What according to you is the role of a regulator?

a. To develop and implement rules that create a competitive environment in the market
b. To implement the Competition Law
c. To facilitate business arrangements
d. Can’t say/don’t know

16. Have you or your fellow stakeholders ever been invited to participate in stakeholders’ meetings organised by regulators?

a. Yes
b. No

17. If yes, was the meeting participatory?

a. Not at all
b. Somewhat
c. Fully
d. Not Applicable

18. The attributes 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 of 1-4 (choose only 1, 2, 3 or 4) in order of increasing importance.

a. By making regulatory bodies more independent
b. Allocating more budget
c. Good quality personnel
d. Reducing political interference

19. How would you rank the quality of regulation in India on a scale of 0-4 (Very poor=0 and Excellent=4)? Choose only among numbers 0, 1, 2, 3 or 4.

a. Very poor
b. Poor
c. Satisfactory
d. Good
e. Excellent

IV. Nature and Impact of Government Policies/measures

20. 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 that controlling the price of all essential drugs is the right way?

a. 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 choose the medicines they consume; it is the doctors and retailers that play an important role in purchase decisions
b. No, price control is not required at all; government should instead encourage competition with appropriate monitoring of prices
c. 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
d. Can’t say/don’t know

21. India has experimented with price control of select patented products. Do you think that such action of fixing prices is the right way to protect consumer interest?

a. Yes
b. No, the government should have entrusted the task of evaluation to a specialised body such as the patents authority
c. No, the government should have instead encouraged competition
d. Can’t say/don’t know

22. There are several instances of intervention in pricing of essential commodities to make them affordable to ordinary consumers/farmers; while the overall objective behind such intervention may be desirable, please indicate if you think the manner of government intervention is right?

a. Yes, always
b.Yes, sometimes
c.No, never
d. Can’t say/don’t know

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

a. Private and public sector players are always given equal treatment
b. Private players get equal treatment only in some cases
c. Contract terms and conditions are always loaded in favour of public sector units
d. Can’t say/don’t know

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

a. Yes, it has come down significantly
b. Yes, there has been some reduction
c. No, there is no change
d. No, the number of procedures has actually increased
e. Can’t say/don’t know

25. Government often gives purchase preference to public sector units in government procurement in order to ensure their viability in the long run. Do you think such a preference policy is right?

a. Yes, it compensates PSUs for social objectives they are required to achieve and enables them to compete with private companies
b. No, it creates an uneven playing field and distorts the market process
c. No, the government should instead give PSUs autonomy and allow them to operate on a purely commercial basis
d. Can’t say/don’t know

26. 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?

a. 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
b. No, this precludes appointment of professionals and undermines regulatory effectiveness
c. Can’t say/don’t know

PART B: SECTORAL REGULATION

V. Competition from Abroad

27. Are cheap imports from overseas undermining the product standards/quality of products available in India?

a. Yes
b. No

28. Do you think there exists unfair production practices in some competitor countries that distort the level playing field for the domestic suppliers/industries both in the domestic and third-country markets?

a. Yes
b. No

29. If yes, how should this be regulated/contained? Indicate your priorities on a scale of 1-3 by using only integers (1, 2 or 3).

a. Strict monitoring of quality of imports through spot tests of products being sold/at the customs terminal.
b.Introduction of product regulations to monitor quality of products sold in the Indian markets
c. By leaving it to market forces — the survival of the industry will depend on its dynamic competitiveness and ability to innovate.

30.The Indian government and industry has been using safeguard measures to level the playing field of domestic producers’ vis-à-vis emerging market competitors. Do you think that this is a desirable/sustainable measure?

a. Yes
b. No
c. Can’t say/don’t know

VI. Micro Finance Institution (MFI)

31. Do you think that the MFI sector in India needs to be regulated?

a. Yes
b. No
c. Do not know

32. Do the sector/consumers only suffer from problems emanating from coercive practices and high interest rates?

a. Yes
b. No
c. Can’t say/don’t know

33. Rate the state of competition between government-sponsored and private MFIs? Indicate your priorities on a scale of 1-5 [1=Very poor and 5=Very good

a. Very poor
b. Poor
c. Satisfactory
d. Good
e. Very good

34.The MFIs in India give multiple loans to borrowers, leading to over-borrowing and unsustainable debt. How significant is this for debt default problems?

a. The practice should continue, it benefits consumers needing loans for multiple purposes
b. The government/private MFI should conduct a Know Your Customer (KYC), i.e. conduct an ability to pay test before extending multiple loans
c. Farmer/debtor suicides are not always because of debt default issues
d. Can’t say/don’t know

VII. Natural Gas

35. Are existing regulations adequately addressing the infrastructure issues transportation to supply of gas to consumers?

a. Yes
b. No
c. Can’t say/don’t know

36. Can you on the basis of ‘priority to address’, rate, on a scale of 1-5 (1 for highest) the issues related to the natural gas supplies

a. Pricing/Tariff/Affordability
b. Open access to pipeline infrastructure
c. Partnership with Liquefied Natural Gas (LNG) supplying nations
d. National pipeline Grid for Distribution & supply of LNG
e. Long term supply Agreements

37. The lack of expansion of private capacity in the gas sector, even after various efforts, can be attributed to:

a. Lack of level playing field in public sector and private sector supplier companies
b. The regulated tariffs of subsidized categories such as domestic consumers or consumers in the north-east, nor they are releasing adequate subsidies to cover up the deficits
c. Industrial consumers (private fertiliser companies) are increasingly adopting the practice of having ‘dedicated suppliers’ which impacts the cross-subsidisation needed to make the project viable
d. Market dominance of the public sector players
e. All the above

VIII. Real Estate

38. Are the existing regulations adequately addressing the regulatory and competition issues in the sector?

a. Yes
b. No
c. Do not know

39. Do you think that the regulatory requirements in India (esp. multiplicity of regulations, lack of consistency among regulations in different states) are a critical factor undermining the sector’s growth?

a. Yes
b. No
c. Do not know

40. If you think that there is an absence of organised sector participation in the real estate sector, what has been the reason for it?

a. Lack of government focus and understanding on the benefits of such change
b. Policy regime of protecting unorgansied sector due to rent seeking activities and political interference
c. both

41. Will the strong arm of regulation (as proposed under the Model Real Estate Management Bill) and long outreach of regulators and bureaucrats improve
governance and reduce corruption in the
sector?

a. Yes
b. No
c. Do not know

IX. Retail Distribution

42. There are intermediaries in retail markets at different stages of the retail supply chain. Poor infrastructure and isolated markets imply that there is a lack of competition at the different 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 of intermediaries be reduced? Please rank the following measures in terms of increasing effectiveness (choose numbers 1, 2, 3 or 4),

a. Encourage competition among intermediaries through better infrastructure for physical connectivity which removes geographical isolation of markets and can help bring the supplier closer to the consumer and through infrastructure for storage and credit
b. Integration of supply chain by having more of organised retailer
c. Remove hindrances to cross-border suppliers to allow for efficient sourcing
d. All

43. Are the perceived problems for small retailers and consumers a function of lack of independent central regulator/formal two-tier regulatory structure or do they largely result from malpractice/ corruption and lack of planning?

a. Yes, proper regulation and an independent regulatory commission will help ensure effective competition and guard the consumer’s interests
b. No, consumers and traditional (small and medium) retailers will benefit significantly if malpractice can be eliminated/controlled and timely planning is undertaken
c. Both of the above

44. By introducing requirements of licensing for traders, regulated markets have restricted entry for many traders. Such licensing requirements, if disallowed, could have increased the competition and helped consumers for getting a better price.

a. Yes
b. No
c. Do not know

45. Are predatory prices (excessively low prices), a serious problem in the sector?

a. Yes
b. No
c. Do not know

46. Are there government regulations/policies that explicitly work against the small retailer?

a. Yes
b. No
c. Do not know

47. Has the relaxation of the FDI cap (upper limit) introduced more choices for the Indian consumer?

a. Yes
b. No
c. Do not know

48. Are there any ex-ante (pre-existing) mechanisms to assess the effects of potential competition concerns in Indian retail sector?

a. Yes
b. No
c. Do not know

If yes ,the interviewer to please get an explanation for this qualitative query.

X. Roads/Highways

49. How damaging are exclusive rights given in concession agreements to concessionaire (necessary to enhance project viability) for leading to possible abuse of dominance? Indicate your priorities on a scale of 1-3 [1=Very damaging and 3=Not damaging]

a. Very damaging
b. Satisfactory/not relevant
c. Not damaging

50. How important a concern is the right given to charge tolls, necessary to maintain the infrastructure, for leading to possible abuse of authority? Indicate your priorities on a scale of 1-3 [1= Not important and 3= Very important]

a. Not important
b. Satisfactory/not relevant
c. Very important

51. Are the present regulations adequately promoting competition in this sector while addressing the demand for road infrastructure?

a. Yes
b. No
c. Do not know

52. Is the limitation imposed by the absence of an independent regulator for the sector serious?

a. Yes
b. No
c. Do not know

XI. Telecommunication Services

53. How restrictive are the prequalification processes and requirements for bidding for licenses?

a. Very
b. Not really
c. Do not know

54. How damaging/debilitating has been the deterioration of functional and financial independence of TRAI over time?

a. Very
b. Not really
c. Do not know

55. How damaging/debilitating has been the lack of regulatory certainty in the sector from the perspective of its growth?

a. Very
b. Not really
c. Do not know

56. Can the slow growth of broadband penetration in the country regulation induced or technology/purchasing power induced?

a. Regulation induced
b. Technology/purchasing power induced
c. Both of the above
d. Do not know

57. The Government recently approved sharing of all the physical network infrastructure components by multiple operators. This has the potential of reducing costs for telcos and also forces the operators to use the same technology and features, i.e. encourage interoperability. [You may select more than one option for this question]

a. Yes, the telcos have benefitted from lower expenditure
b. No, the cost benefits of infrastructure sharing have not materialised yet
c. Yes, the move has promoted interoperability
d. No, interoperability is not perceived yet in the sector
e. Do Not know

58. Is the mandated infrastructure sharing (as discussed above) facilitating competition?

a. Yes
b. Not really
c. Do not know

THE SURVEY ENDS HERE.

THANK YOU VERY MUCH FOR YOUR COOPERATION

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