Question

Assertion (A): India has become a favourable destination of outsourcing for most of the MNCs.

Reason (R): India has vast, skilled, and cheap manpower, which enhances the faith of MNCs for outsourcing in India.

Alternatives:

Options

• Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).

• Both Assertion (A) and Reason (R) are true, and Reason (R) is not the correct explanation of Assertion (A).

• Assertion (A) is true, but Reason (R) is false.

• Assertion (A) is false, but Reason (R) is true.

Answer 1

Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).

Explanation:

Liberalisation, advances in communication, and a large, reasonably skilled but low‑cost workforce make India a cost‑effective, reliable outsourcing hub for MNCs, attracting foreign investment and BPO operations.