Why did union carbide an American company prefer to open its plant in India?

Reasons why Union Carbide chose to open its plant in India:

Final answer: Union Carbide, an American company, opened a plant in India due to cheap labor, availability of raw materials, a potential large market, and favorable government policies.

Explanation:

Union Carbide, an American company, chose to open its plant in India for a few key reasons. The first reason is cheap labor. Labor costs in India are significantly lower than in many other countries, including the United States. Secondly, India has a large population, which means a potential large market for their products. The third reason is the availability of raw materials. India is rich in many resources like coal and iron ore, which are essential in chemical manufacturing processes. Finally, it's worth mentioning the favorable government policies. India, during the time Union Carbide set up the plant, had policies to attract foreign investments to boost their economy and develop industry areas.