Question

What are the advantages of foreign companies in setting up production in India?

Accepted Answer

The advantages of foreign companies in setting up their production in India are as follows:
Foreign companies come to India because of the cheap availability of labour. The wages that the companies pay to labourers within the USA are far higher than what they have to pay to workers in India.

Low compensation and longer hours of work. Additional costs such as housing facilities for workers are also cheaper.

Thus, companies can save costs and earn higher profits. Cost-cutting can moreover be done by other more dangerous means like lowering working conditions, including lower safety measures.

What are the advantages of foreign companies in setting up production in India?

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