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 ** of five years.
(iii) Labour laws are made flexible.
(iv) Instead of hiring workers on a regular basis, companies hire workers flexibly for short ** when there is intense pressure of work.