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MNCs investing in India because ____costs are cheaper.

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Detailed Solution

MNCs invest in India because production costs are cheaper. After Globalisation, many MNCs have invested in India. MNCs have increased their investments in India because it is beneficial for them. It is cheaper to hire labour and buy raw materials in developing countries like India. It reduces the production costs of these Multinational Corporations. Also, many policies of the Indian Government have attracted foreign investment from these MNCs. Special Economic Zones(SEZs) created by the Indian Government have world-class facilities, free electricity, water, and other facilities. These companies do not even have to pay taxes for the initial period of five years.

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