Why were tax incentives provided to foreign investors during the 1991 economic reform period in India?
To attract foreign investment
The 1991 economic reforms under the policy of Liberalisation, Privatisation and Globalisation (LPG) aimed to open up the Indian economy after a severe balance-of-payments crisis.
A key objective was to bring in foreign capital and technology, so the government relaxed rules and offered concessions such as tax incentives to make India an attractive destination for Foreign Direct Investment (FDI).
By reducing the tax burden, these incentives lowered the cost of doing business and encouraged multinational companies to invest in India.
Hence, the tax incentives were provided to attract foreign investment.
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Which among the following industries generates invisible exports?
In Union Budget 2019, the government eased ______ to encourage start-ups in the country.
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Which of the following is an example of an indirect tax?
