Which of the following steps have NOT been taken by the government to attract foreign companies to invest in India?

Correct option is A

The correct answer is (A) Flexibility in the taxation system.
· While several steps have been taken by the Indian government to attract foreign companies to invest, flexibility in the taxation system is not specifically highlighted as a deliberate measure to attract foreign investment.
· Other options, such as setting up Special Economic Zones (SEZs) and offering tax incentives, are concrete steps taken to encourage investment.
Explanation of Other Options:
· Flexibility in the taxation system: Incorrect; while there have been reforms like GST and corporate tax rate reductions, these are broader economic reforms, not specifically designed to attract foreign companies.
· SEZ’s setup production units do not have to pay taxes for an initial period of five years: Correct; this is a key incentive for foreign investors.
· Special Economic Zones are being set up: Correct; SEZs are specifically designed to attract foreign investments by providing infrastructure and incentives.
· Flexibility in the labour laws: Correct; aimed at attracting foreign manufacturing units.