Question 3 - Past Year Questions - 5 Marks - Chapter 4 Class 10 Economics - Globalisation and the Indian Economy - Economics

Explain any five facilities available in the special economic zones developed by the Central and State Governments to attract foreign investment.

Answer: 

Points to Remember

In order to attract foreign companies to invest in India , Government set up industrial Zones knowns as Special Economic Zones (SEZs) 

• Special Economic Zones (SEZs) provide world-class facilities  
• The government offers recreational and educational opportunities.  
• Companies that establish production units in SEZs are exempt from paying taxes
• labor regulations more flexible .
• Companies hire workers flexibly for brief periods of time .

Answer to be written in exam

In order to attract foreign companies to invest in India , Government set up industrial Zones knowns as Special Economic Zones (SEZs) 

• Special Economic Zones (SEZs) provide world-class facilities such as electricity, water, roads, and transportation to foreign companies. 
• The government offers recreational and educational opportunities . 
• Companies that set up their production units in the SEZs do not have to pay taxes f or an initial period of five years
• The government has made labor regulations more flexible in order to attract international investment.
• Rather than hiring workers on a regular basis, MNCs hire workers flexibly for brief periods of time when there is heavy work pressure.