What are the advantages to foreign companies in setting up
production in India?
Answers
Less cost required for establishing the infrastructure.
Cheap labour
Cheap and quality raw materials.
Government incentives
Answer:
The advantages to foreign companies in setting up production in India are the following:
They can get cheap labour in India. Wages that the companies pay to workers say in the U.S.A. are far higher than what they have to pay workers in India. For lower pay, foreign companies can get long hours of work.
They can spend the least on housing facilities for workers. Thus, companies can save costs and earn higher profits.
They can cut cost by providing lower working conditions including lower safety measures. Working conditions including lower safety measures are used as ways of cutting costs in India.
Thus the foreign companies look for setting up production in India.