Explain the steps taken by government to attract foreign investment.

Government can take following steps to attract foreign investment:

(a) Industrial zones called SEZ (Special economic zones) are being set up to provide world class facilities-electricity, water, roads, transport, storage etc.

(b) Govt. has also allowed flexibility in the labour laws to attract foreign investment.

(c) Instead of hiring workers on a regular basis companies can hire workers ‘flexibly’ for short provide when there is intense pressure of work.

(d) Exemption from paying tax in early 5 years Do it yourself from the notes.

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