Answer:
Government
attracts foreign investment in the followings ways
(i) Special Economic Zones have been
set up to have world-class facilities such as cheap electricity, roads, transport,
storage, etc.
(ii) The companies set up their units in SEZs which are exempted to pay
tax for initial period of five years.
(iii) Labour laws are made flexible.
(iv) Instead of hiring workers on a regular basis, companies
hire worker's flexibility for short period when there is intense pressure of
work.
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