Read the following statements carefully and choose the correct option regarding Assertion (A) and Reason (R).
Assertion (A): Globalization has led to increased outsourcing of services to India.
Reason (R): India offers high-cost, low-skill services to foreign companies.
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. A is true but R is false.
Globalization has increased the movement of goods, services, technology, and information across countries. Due to this process, many foreign companies outsource services such as customer support, software development, accounting, and IT services to India.
India has become a major outsourcing destination because it provides skilled manpower, good technical knowledge, and services at comparatively lower costs. However, the reason given is incorrect because India is known for offering low-cost and skilled services, not high-cost and low-skill services. The availability of educated English-speaking professionals and strong IT infrastructure has helped India gain an important position in the global service sector. Therefore, the correct option is that Assertion is true, but Reason is false.