Question

What steps have been taken by the indian government to attract foreign investors?
5 marks

Answer 1

ANSWER

Government attract foreign investment in

the following ways

(i) Special Economic Zones have been set

up to have world-class facilities such as

cheap electricity, roads, transport, storage,

etc.

(ii) The companies set up their units in SEZS

which are exempted to pay tax for initial

period of five years.

(iii) Labour laws are made flexible.

(iv) Instead of hiring workers on a regular

basis, companies hire workers flexibly for

short period when there is intense pressure

of work.

Hope it helps you

Answer 2

India is now taking steps to attract foreign investors by the following ways:
1. Labour laws is made flexible
2. Removal of all trade barriers
3. Globalisation is increased
4. Attracting foreign investors by new markets