C.10 (a) Examine the steps taken by the Central Government and State Governments to attract foreign investment in India.
The Central and state governments attracts foreign investment in the following ways:
- Allowing the foreign companies as tax free for the first five years in the industrial zones or SEZs (special economic zones) .
- Industrial zones called SEZs (special economic zones) are being setup. These zones are to have world class facilities, such as electricity, water, roads, transport, storage, recreational and educational facilities.
- Flexibility in labour laws.