It is true. The existing organizations can increase production to some extent. They are bound by many factors and reasons.
To increase production in today's country, and its economic scenario, more number of entrepreneurs are needed. The healthy competition and ability of entrepreneurs will increase production. Also the facilities and rebates given to entrepreneurs will encourage more production. That will encourage production in different parts of the country rather than concentratedly in some areas or states.
Also different entrepreneurs having different viewpoints and capabilities will promote production, market, sales, employment, self sustenance etc.