Question

4. What are government incentives for establishing industries in backward areas?​

Answer 1

Answer:

The industries established in the backward areas for hilly areas receive the preferential treatment in the allotment of scarce raw materials such as iron and cement. Octroi has been abolished in almost all the states. Loans are offered at a lower rate. Finance subsidy is given for building capital Assets of 10% to 15%.

Explanation:

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Answer 2

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In order to encourage the establishment of industries in backward areas, the government provides land plots at concessional rates, especially to industrialists in backward regions. This makes setting-up industries cheaper.

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