How is the government of india trying to attract more foreign investment? Explain with examples?
Answers
Answer:
Govt of India attracts foreign investment by:
1. The government has set up Special Economic Zones with best facilities of electricity, water etc.
2. Companies who set up their units in SEZs don't need to pay taxes for the first five years.
3. The government has allowed flexibility in labour laws so that the companies find it profitable.
4. Companies can hire workers without the security of jobs that is for the time when there is the intense pressure of work
5. The government provides various legal concessions to attract companies to invest in India.
steps to attract foreign investment:
1. In recent , years the central and the state government in India taking special steps to attract foreign companies to invest in India. 2.Industrial zones, Special Economic Zone are being set up. Special Economic Zone to have world class facilities electricity, water, roads transport, storage ,recreational and educational facilities.
3. Companies, to set up production units in the special economic zone, do not have to pay taxes for the initial period for 5 years . government has also allowed flexibility in the labour laws to attract foreign Investments.
4. in the recent years the government has allowed companies to ignore many of the labour laws. Instead of hiring workers on regular basis, companies hire workers flexibility for short period when there is intense pressure of work.
5. This is done to reduce the cost of labour for the company.