How does Government attract foreign investment? Explain different ways



Government attracts foreign investment in the followings 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.