What are the advantages to foreign companies in setting up production in india?


Question: What are the advantages to foreign companies in setting up production in india?

1. Large Pool of Skilled Labour: India has a large and growing pool of educated and skilled labour, ensuring that companies are able to find the right staff to manage their production facilities. 


2. Lower Cost of Production: A combination of cost competitive inputs, lower wages and reducing cost of capital allows companies to reduce their overall cost of production in India.


3. Favourable Government Policies: The Indian Government has implemented a range of policies designed to encourage foreign investments and promote manufacturing growth. These include SEZs, Foreign Direct Investment policies, access to tax incentives and dedicated parks for industrial development.


4. Availability of Resources: India is one of the largest producers of raw materials in the world, including textiles, minerals and agricultural products, making it simple for companies to source the inputs and resources they need for manufacturing. 


5. Strategic Location: With access to a large domestic market and proximity to other Southeast Asian markets, India provides an advantageous location for companies looking to produce for the region.

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