Question

Explain any five steps taken by the Central and State Governments to attract foreign companies to invest

in India.
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Answer 1

Answer:

(i) The government has set up industrial zones called special Economic Zones (SEZs).

(ii) Companies who set up production units in the SEZs do not have to pay taxes for an initial period of five years.

(iii) The government has also allowed flexibility in the labour laws to attract foreign investment

Explanation:

Answer 2

Explain any five steps taken by the Central and State Governments to attract foreign companies to invest in India.

• The Indian government has made specific efforts in recent years to get foreign businesses to invest in India: Special Economic Zones, or SEZs, are industrial areas created by the government.
• SEZs offer top-notch facilities, including those for energy, water, roads, storage, recreation, and education. ii During a first five years, businesses that establish production units in SEZs are exempt from paying taxes.
• To encourage international investment, the government has also made labour regulations more lenient. Companies can now temporarily reduce employee hours when there is a high volume of work. This lowers the cost of labour for the businesses.
• promoting the competitiveness of domestic businesses and enabling their access to markets; functioning in a socially and environmentally responsible manner; supporting the transfer of technology, knowledge, and know-how; improving the skill base of host economies; and.
• Two methods exist for approving foreign investment: automatically through the Reserve Bank of India and formally through the FIPB. The Ministry of Industry's entrepreneurial support unit offers guidance to business owners on matters pertaining to investment. To encourage FDI, the Foreign Investment Promotion Council was founded.

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