Question

Why does the government try to attract more foreign investments?

Answer 1

The govt. try to attract more foreign investment ....
1.The govt. 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 5 years
3. The govt. has allowed flexibility in labour law so that the companies find it profitable.

Answer 2

Question: Why do governments try to attract more foreign Investments?

Answer: Governments try to attract more foreign investments for the following reasons:

It provides the necessary capital for undertaking economic activities, which would in turn boost the GDP growth...

It leads to increased employment opportunities...

It provides the required tax income for the government...

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