economicsWhich of the following is not one of the three steps taken by the Indian government to attract foreign investment?

Which of the following is not one of the three steps taken by the Indian government to attract foreign investment?


  1. A
    Setting up SEZ
  2. B
    Tax concessions to companies in SEZ
  3. C
    The flexibility of labour law
  4. D
    All of the above 

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    Solution:

    All of the above is not one of the three steps taken by the Indian government to attract foreign investment.
  • Setting up SEZ: The government of India has set up many Special Economic Zones to attract foreign investment. These SEZs provide world-class facilities like water, electricity, and roads for transport to the companies set up in these areas.
  • The government has also declared that companies set up in SEZ will not be required to pay taxes for the initial five years.
  • The government also has made labour laws flexible to reduce the cost to the company of labour.

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