Assertion (A): India’s software exports increased at an average growth rate of 50% since 1995-96. Reason (R): Indian software companies were cost-effective and maintained international quality.
- ABoth A and R are individually true, and R is the correct explanation of ACorrect
- BBoth A and R are individually true, but R is NOT a correct explanation of A
- CA is true, but R is false
- DA is false, but R is true
Explanation
The Assertion is correct because the period following the 1991 reforms saw an unprecedented boom in the Indian IT sector. Historical data confirms that India experienced an average annual growth rate of approximately 50 percent in software exports between the mid 1990s and the early 2000s.
The Reason is also correct and provides the logical basis for this growth. Indian software firms gained a competitive advantage in the global market by offering high quality services at a significantly lower cost compared to Western firms. This cost effectiveness, combined with adherence to international quality standards like ISO and CMM, directly fueled the rapid increase in export demand. Therefore, R is the correct explanation for A.
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