Explain any three steps taken by the Indian Government to attract foreign investment

Explain any three steps taken by the Indian Government to attract foreign investment.

THE Central and the State governments Eire taking special steps to attract foreign companies to invest in India.

  • Special Economic Zones are being set up.
  • Special Economic Zones are to have world class facilities in the field of electricity, water, roads, transport, storage recreational and educational facilities.
  • Companies which set up production units in the SEZs, do not have to pay taxes for an initial period of five years.
  • Government has allowed flexibility in the labour laws. In recent years, the government has allowed companies to ignore many of rules and regulations.
  • Companies can hire workers for short periods when there is intense pressure of work. This is done to reduce the cost of labour for the company.