In the recent years the Indian Government has taken special steps to attract foreign companies to invest in India: i The government has set up industrial zones called special Economic Zones SEZs. SEZs provide world class facilities – electricity water roads transport storage recreational and educational facilities.
What steps have been taken by the government to attract foreign investment class 10?
(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.
How does government attract foreign investment?
(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. (iii) The government has also allowed flexibility in the labour laws to attract foreign investment.
How can we attract foreign investment in our country?
Contribute to the set-up of Investment Promotion Agencies (IPA). A successful IPA could target suitable foreign investors and could then become the link between them and the domestic economy. On the one side, it should act as a one-stop shop for the requirements such investors demand from the host country.
What are the steps taken by the central and state governments to attract foreign companies?
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.
What steps are necessary to ensure FDI inflows in India?
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.
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.
What factors attract foreign investors into China?
A host of factors influence FDI in China, such as stability, availability of world investment capital, and government regulatory policy.
- Capital Availability. …
- Competitiveness. …
- Regulatory Environment. …
- Stability. …
- Local Chinese Market and Business Climate. …
- Openness to Regional and International Trade.
How do you attract investors?
11 Foolproof Ways to Attract Investors
- Try the “soft sell” via networking. …
- Show results first. …
- Ask for advice. …
- Have co-founders. …
- Pitch a return on investment. …
- Find an investor that is also a partner, not just a check. …
- Join a startup accelerator. …
- Follow through.
How is the government of India trying to attract more foreign investment 5 explain with the help of 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.
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:
How the central and state government in India are taking special steps to attract foreign companies to invest in India?
The Indian Government attracted foreign companies in the following ways: Special Economic Zones (SEZs) are being set up to have world class facilities such as educational, electricity, water, transport, storage recreational etc. Production units in SEZs are initially exempted from taxes for a period of five years.
Why did the government decided to remove barriers on foreign trade and foreign competition?
The Indian government removed barriers on foreign trade and foreign investment because it felt that competition would improve the performance of producers within the country since they would have to improve their quality.