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INCENTIVES FOR ATTRACTING FOREIGN CAPITAL IN INDIA

INCENTIVES FOR ATTRACTING FOREIGN CAPITAL IN INDIA. Liberalisation in FDI policy -government of India has liberalised its FDI on various fronts e.g. reducing the no of prohibited areas etc.

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INCENTIVES FOR ATTRACTING FOREIGN CAPITAL IN INDIA

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  1. INCENTIVES FOR ATTRACTING FOREIGN CAPITAL IN INDIA

  2. Liberalisation in FDI policy-government of India has liberalised its FDI on various fronts e.g. reducing the no of prohibited areas etc. • Tax incentives -government has offered tax incentives like tax holiday, exemption from stamp duty , excise duty etc. • Setting up of SEZs and NIMz –government has setup some special zone under which they get special privileges like less checks , better infrastructure etc. • Infrastructure development-good infrastructure always attract investors. Indian government spends heavily on developing infrastructure.

  3. Skilled workforce- government has also spends on manpower so that they can easily collaborate with private sectors. • Favorable labour laws- government has made necessary modification in labour laws considering the requirements of private sector. • Vast consumer base- India is becoming one of the largest consumer market due to largest population and increase rate of income.

  4. High economic growth rate-india has emerged as one of the fastest growing economies in the world. • Diverse India- India is multinational nation. People of different cultures in India. It makes Indian people make easy to adopt foreign goods.

  5. Institution set up by government for promoting foreign investment • Setting up foreign investment promotion board • Setting up foreign investment promotion council • Foreign investment implementation authority • Investment commissio9n • Secretariat for industrial assistance • Indian brand equity foundation

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