Chapter 6 PROFILE OF THE SAMPLE OF VENDERS This Chapter presents the profile of the sample of vendors as part of Phase II of the study. Section 6.1 highlights the objectives of the survey. This is followed by a description of the various characteristics of vendors. The next section attempts to answer a number of key questions on the basis of the findings of the survey related to impact of tariff protection on employment and technology deepening, degree of competitiveness, etc. 6.1. OBJECTIVES OF THE SURVEY According to the TOR of this phase of the study, the survey is expected to provide insights into the backward-forward linkages between the production units and their vendors of choice and the arrangements for aftermarket sales. It will determine costs of production, the margins of profit and the extent of competition among vendors for long-term supply with the production units. The survey is also aimed at providing answers to the following critical issues i) Has the protection provided to the industry resulted insufficient job creation and technology deepening to justify the costs imposed on consumers ii) Whether the firms that have benefited from the protection are dynamically sustainable, that is, will eventually become competitive to move up the value chain and compete without protection iii) How effective is the AIDP in achieving its goals, with particular reference to the deletion programme? iv) What are the impediments to increasing competitiveness of the industry v) What are the incentives required for firms to produce high technology products and moving the industry towards greater value addition vi) What are the possible impacts of imports from India Based on the above, this Chapter gives a description of the sample of vendors. This is followed by an attempt to answer the above questions, based on the findings of the survey. Next, we assess in Chapter 7, the possible impact of the imports from India as indicated by the respondents and the type of policies which will need to be adopted to mitigate against any negative consequences.