Question: How does the Indian government attract the MNCs?

How does India attract MNC?

The respondents said market potential, skilled workforce, and political stability as the top three reasons to make India their favoured destination.

What can Indian government do to attract MNCs?

5 ways India can attract companies moving out of China

  • Plan in the works.
  • Corporate tax cuts – the first step.
  • Labour law reforms.
  • Land on a ‘Plug and Play’ basis.
  • Privatisation of PSUs.
  • Relationship managers to handhold foreign investors.
  • Personal income tax cuts under consideration.

What are the steps taken by the government to attract MNCs?

In the recent years the Indian Government has taken special steps to attract foreign companies to invest in India: i The government has set up industrial zones called special Economic Zones SEZs. SEZs provide world class facilities – electricity water roads transport storage recreational and educational facilities.

Why are multinational companies attracted to India?

MNCs prefer India as their destination for setting business for following reasons: (i) India has highly skilled engineers who can understand the technical aspects of production. (ii)It has also educated English speaking youths who can provide customer care services. (iii)India has cheap labour and resources.

THIS IS FUNNING:  You asked: How Long Will UK visa take to process in India?

What is the most common route for MNC investment?

The most common route for MNC investments is to buy up local companies and then to expand production. MNCs with huge money often do so. For example: A big food company in America (Cargill Foods) buys a smaller company in India (Parakh Foods).

In what ways does China provide advantage to the MNCs?

China provides the advantage of being a cheap manufacturing location.

What policy should government of India follow regarding MNC?

MNCs operating in India should have a clear set of anti-bribery rules; on its part the Indian government needs to strengthen anti-corruption laws.

How can an MNC affect its host country?

MNCs add to the host country GDP through their spending, for example with local suppliers and through capital investment. Competition from MNCs acts as an incentive to domestic firms in the host country to improve their competitiveness, perhaps by raising quality and/or efficiency.

What different steps are taken by central and state government to attract foreign companies?

The Indian Government attracted foreign companies in the following ways:

  • Special Economic Zones (SEZs) are being set up to have world class facilities such as educational, electricity, water, transport, storage recreational etc.
  • Production units in SEZs are initially exempted from taxes for a period of five years.

What are the steps taken by the government to attract foreign investment in India Class 10?

THE Central and the State governments Eire taking special steps to attract foreign companies to invest in India.

  • Special Economic Zones are being set up.
  • Special Economic Zones are to have world class facilities in the field of electricity, water, roads, transport, storage recreational and educational facilities.
THIS IS FUNNING:  What type of visa is a spouse visa UK?

How does government attract foreign trade?

(i) The government has set up industrial zones called special Economic Zones (SEZs). … (ii) Companies who set up production units in the SEZs do not have to pay taxes for an initial period of five years. (iii) The government has also allowed flexibility in the labour laws to attract foreign investment.