Q1. [3] medium exam-ready
Small producers in India have been severely affected by globalisation. Explain with any three relevant points.
Generated by claude-sonnet-4-6 · 2026-06-26 13:25 · grounding rag
Model Answer
Globalisation has severely affected small producers in India in the following ways:
- Increased competition: MNCs with vast resources, advanced technology, and global reach compete with small producers, who are unable to match their lower prices and higher quality products.
- Loss of market: Small producers in industries like toys, garments, and footwear lost their market share to cheaper imported goods and MNC products, leading to closure of many small units.
- Flexible labour laws: To attract foreign investment, the government relaxed labour laws. This made it easier for large companies to hire workers on short-term basis, hurting workers and small producers in the organised sector.
Source: Chapter 4 — Globalisation and the Indian Economy, Impact of Globalisation in India / Summing Up
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Explanation
- The examiner expects three distinct points — one per mark. Label or clearly separate each point.
- Key phrase from the textbook: "many small producers and workers have suffered as a result of rising competition" — always anchor your answer here.
- Avoid writing about benefits to MNCs or well-off consumers; focus strictly on negative impact on small producers.
- Examples (toys, garments, footwear) add value but are not mandatory for full marks.