Read the following extract and answer the following questions:

In recent years, the central and state governments in India have been 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 SEZ production units do not have to pay taxes for five years. The government has also allowed flexibility in the labour laws to attract foreign investment. You have seen in Chapter 2 that the companies in the organised sector have to obey certain rules that aim to protect the workers’ rights. The government has recently allowed companies to ignore many of these. Instead of hiring workers regularly, 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. However, foreign companies are still not satisfied and demand more flexibility in labour laws.

SEZ stands for ____.

Question

Read the following extract and answer the following questions:

In recent years, the central and state governments in India have been 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 SEZ production units do not have to pay taxes for five years. The government has also allowed flexibility in the labour laws to attract foreign investment. You have seen in Chapter 2 that the companies in the organised sector have to obey certain rules that aim to protect the workers’ rights. The government has recently allowed companies to ignore many of these. Instead of hiring workers regularly, 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. However, foreign companies are still not satisfied and demand more flexibility in labour laws.

SEZ stands for ____.

Accepted Answer

SEZ stands for special economic zones.
The central government set up these industrial zones to attract foreign investment in India. In SEZs, the government provides world-class facilities like water, electricity, roads, transport, recreation, and education. This is done so that foreign companies can set up their operations here. Along with this, production units started by foreign companies are given tax concessions for five years by the government. The government has also allowed flexibility in the labour laws to attract more foreign investment. This has resulted in an increase in employment and development in the regions with SEZ.

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