+2 votes
in Class 12 by kratos

How does Government attract foreign investment? Explain different ways.

1 Answer

+5 votes
by kratos
 
Best answer

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.

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