Q1. [5] § INTERLINKING PRODUCTION ACROSS COUNTRIES § WHAT IS GLOBALISATION? § IMPACT OF GLOBALISATION IN INDIA
⚠ Globalisation and the Indian Economy › INTERLINKING PRODUCTION ACROSS COUNTRIES — Internal project only — not in the Board exam (per CBSE 2026-27 curriculum)
Only 'What is Globalisation?' and 'Factors that have enabled Globalisation' are in the Board exam; the remaining sub-topics are the internally-assessed interdisciplinary project. [source: Course Structure — Economics, Chapter 4 (Subtopics evaluated in Board)]⚠ Globalisation and the Indian Economy › IMPACT OF GLOBALISATION IN INDIA — Internal project only — not in the Board exam (per CBSE 2026-27 curriculum)
Only 'What is Globalisation?' and 'Factors that have enabled Globalisation' are in the Board exam; the remaining sub-topics are the internally-assessed interdisciplinary project. [source: Course Structure — Economics, Chapter 4 (Subtopics evaluated in Board)]Explain any five steps taken by the Central and State Governments to attract foreign investments.
Previously asked in CBSE board exam
2023 32/2/1 Q33(b)
Generated by claude-sonnet-4-6 · 2026-06-15 06:58 · grounding rag
Model Answer
The Central and State Governments have taken the following steps to attract foreign investment:
- 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.
- Tax Exemptions: Companies setting up production units in SEZs do not have to pay taxes for an initial period of five years.
- 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.
- 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.
- 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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Explanation
- 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.
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