India’s new Economic policies stress the need for research on "Business, Consumer and government". In order to develop markets for experience and credence goods by improving the relationship between the consumer and the producer. Asymmetric information between the producer and the consumer may result in the collapse of the entire market system. In addition, consumers’ misperception about product risks may induce the producer to under supply reliability. Similarly, prevalence of moral hazard and adverse selection may reduce separating equilibrium conditions in the market. In India, market institutions such as reputation may not be effective because consumers are unable to learn signals of a high quality producer. Thus, the scope for opportunistic behaviour on the side of the producer is very high and calls for government intervention to protect consumer interests through liability and regulatory systems. Economic analysis of neither liability nor regulation provides incentives to exercise socially desirable levels of care by the parties. India has Consumer Courts and Bureau of Indian Standards to protect the interests of consumers. Murali Prasad Panta examined the functioning of the systems. He also reviewed the functioning of consumer protection mechanism in Germany in order to draw possible lessons to India.
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