Social Science — CBSE Class 10 board question

The Central and State Governments have taken the following steps to attract foreign investment:

1. Special Economic Zones (SEZs): Industrial zones called SEZs are being set up with world-class facilities like electricity, water, roads, transport, storage, and recreational and educational facilities.

1. Tax Exemptions: Companies setting up production units in SEZs do not have to pay taxes for an initial period of five years.

1. Flexible Labour Laws: Governments have allowed companies to ignore many rules that protect workers' rights, permitting them to hire workers flexibly for short periods, thereby reducing labour costs.

1. Liberalisation of Trade and Investment Policy: Barriers on foreign trade and foreign investment have been removed, allowing foreign companies to set up factories and offices easily in India.

1. Infrastructure Development: World-class infrastructure in SEZs ensures a business-friendly environment that attracts MNCs seeking efficient production locations.

Source: Impact of Globalisation in India, Chapter 4

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• The question is directly from the passage headed "Steps to Attract Foreign Investment" in Chapter 4. Examiners expect you to mention SEZs, tax exemptions, flexible labour laws, and liberalisation — these are the textbook points. The fifth point on infrastructure can be drawn from the SEZ description.
• Do not write vague general points; use the exact terms from the textbook (SEZ, liberalisation, trade barriers, flexible labour laws).
• Five points = 5 marks; keep each point concise and distinct.