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 are the steps taken by the government to attract foreign investment in India 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 India attract foreign investment?
In FY20-21, India has attracted record FDIs amounting to US$ 81.72 billion, 10% higher than the previous financial year. … Moreover, India has been able to attract FDI amid the ongoing COVID-19 pandemic due to the economic shift from China and favourable government policies introduced in the country.
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 to attract foriegn investment?
↵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 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 steps help promote FDI inflow in a country?
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 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:
Why do governments encourage foreign investment?
Governments seek to promote FDI when they are eager to expand their domestic economy and attract new technologies, business know-how, and capital to their country.
Is India competitive enough to attract foreign direct investment?
The World Investment Report 2020 by the UNCTAD said that India was the 9th largest recipient of FDI in 2019, with 51 billion dollars of inflows during the year, an increase from the 42 billion dollars of FDI received in 2018, when India ranked 12 among the top 20 host economies in the world.
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.