Question

How will Indian government benefit, through foreign investments ? Explain with suitable examples.

Answer 1

Foreign investments in India will benefit the Indian government by the following ways,
1) Foreign investments brings in the much needed foreign exchange in the country.
2) The government will earn from the Taxes paid by the foreign companies which set up their market in India.
3) It will in turn improve the economy of the country, and the government will be able to invest more for the benefit and improvement of the country's ecological status and the rest.
4) For example, the profit earned by the government due to foreign investments will help the government to open up new schools, hospital I the urban and rural areas of the country.