In recent years, the central and state governments in India are taking special steps to attract foreign companies to invest in India. Industrial zones, called Special Economic Zones (SEZs), are being set up. SEZs are to have world-class facilities: electricity, water, roads, transport, storage, recreational and educational facilities. Companies that set up production units in the SEZs do not have to pay taxes for five years.

The government has also allowed flexibility in the labour laws to attract foreign investment. The companies in the organised sector have to obey certain rules that aim to protect the workers' rights. Instead of hiring workers on a regular basis, companies hire workers 'flexibly' for short periods when there is intense pressure from work. This is done to reduce the cost of labour for the company.

Instead of hiring workers on a regular basis, companies hire workers 'flexibly' for short periods when there is intense pressure of work is evidence of