What are the steps taken by the government to attract foreign investment in India mention the features of such industrial zones?
(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.
What are the steps taken by the government to attract foreign investment class 10?
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.
How does India attract foreign investment?
Transparent policy and enforcement of intellectual property rights, level of corruption, contract enforcement and tax regime are among the other important factors. Besides, cost competitiveness, availability of skilled labour force and business climate plays an important role in attracting FDI.
What are the steps taken by the Government of India in recent years for attracting foreign direct investment?
FDI beyond 74% under government approval in brownfield pharmaceuticals. 100% FDI under automatic route permitted in Brownfield Airport projects. FDI limit for Scheduled Air Transport Service/ Domestic Scheduled Passenger Airline and Regional Air Transport Service raised to 100%
What are the steps taken by the state and central government to attract foreign investment?
Answer: (i) The government has set up industrial zones called special Economic Zones (SEZs). (ii) Companies who set up production units in the SEZs do not have to pay taxes for an initial period of five years.
How can class 10 attract foreign investment in India?
↵The steps taken to attract foreign investment are: Allowing the foreign companies as tax free for the first five years in the industrial zones. Industrial zones called SEZs(Special Economic Zones) are set up with world class facilities. Allowing flexibility in labour laws.
Why does Indian government attract more foreign investment?
Governments try to attract more foreign investment for the following reasons (a) It helps in improving the financial condition of the people by accelerating growth of the economy. (b) Foreign investments create new job opportunities in the country, directly as well as indirectly in support services like transportation.
How is the government of India trying to attract more foreign investment Explain with examples?
Govt of India attracts foreign investment by: … The government has set up Special Economic Zones with best facilities of electricity, water etc. 2. Companies who set up their units in SEZs don’t need to pay taxes for the first five years.
Which ways are used by government to attract foreign investment state any three such base?
Labour costs, infrastructure quality, company taxes, innovation, economic growth… all these are factors that are used by governments to attract foreign investment.
How do you attract foreign direct investment?
Open markets and allow for FDI inflows.
Reduce restrictions on FDI. Provide open, transparent and dependable conditions for all kinds of firms, whether foreign or domestic, including: ease of doing business, access to imports, relatively flexible labour markets and protection of intellectual property rights.
What are two main benefits that the government of India would give to attract foreign investment in the country?
There are many ways in which FDI benefits the recipient nation:
- Increased Employment and Economic Growth. …
- Human Resource Development. …
- 3. Development of Backward Areas. …
- Provision of Finance & Technology. …
- Increase in Exports. …
- Exchange Rate Stability. …
- Stimulation of Economic Development. …
- Improved Capital Flow.
What factors according to you should attract foreign investors to do business in India and what factors should discourage them?
Factors Favoring and Discouraging Foreign Direct Investment…
- i. Strong Economic Growth:
- ii. Huge Labour Force and High Educated Workforce:
- iii. Access to Capital and Institutional Support:
- i. Poor Infrastructure:
- ii. Rigidity in the Labour Market:
- iii. Bureaucracy and Corruption:
- iv. State Level Obstacles: