Govt of India attracts foreign investment by:
1. 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.
3. The government has allowed flexibility in labour laws so that the companies find it profitable.
4. Companies can hire workers without the security of jobs that is for the time when there is the intense pressure of work.
5. The government provides various legal concessions to attract companies to invest in India.
Explanation: Foreign investment is necessary for country’s economic development. So the government tries to provide incentives to attract investment.
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