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. 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.

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.

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.

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