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Read the following extracts/sources carefully and answer the following questions :
(i) What is foreign investment? (ii) What is SEZ (Special Economic Zone)?
In recent years, the central and state
governments in India are taking special steps to
attract foreign companies to invest in India.
Industrial zones, called Special Economic Zones
(SEZs), are being set up. SEZs are to have world
class facilities: electricity, water, roads,
transport, storage, recreational and educational
facilities. Companles who set up production units
In the SEZs do not have to pay taxes for an initial
period of flue years.
Government has also allowed flexibility In
the labour laws to attract foreign investment. The
companles in the organised sector have to obey
certain rules that aim to protect the workers'
rights. In the recent years, the government has
allowed companles to ignore many of these.
Instead of hiring workers on a regular basis,
companies hire workers 'flexibly' for short
periods when there is intense pressure of work.
This is done to reduce the cost of labour for the
company.
However, still not satisfied, foreign
companies are demanding more flexibility in

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