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Question
Explain any five facilities available in the special economic zones developed by the Central and State Governments to attract foreign investment.
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Solution
The government attracts foreign investment in the following ways:
- Allowing foreign companies as tax free for the first five years in the industrial zones or SEZs (special economic zones).
- Industrial zones called SEZs (special economic zones) are being set up. SEZs are to have world class facilities, such as electricity, water, roads, transport, storage, recreational & educational facilities.
- flexibility in labour laws.
- Establishment of Special Economic Zones, which would provide the industries and factories world class facilities like constant electricity, water, etc.
- There was an exemption for industries set up in desired locations from paying taxes for the first 5 years.
- These industries and factories were also allowed flexibility in labour laws, thus not making it compulsory to employ workers on a permanent basis.
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