Assertion (A) >: Indias 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.

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Q: 30 (IAS/2001)

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.

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,84,23,84,9,2,12

keywords: 

{'indian software companies': [0, 0, 1, 0], 'software exports': [0, 0, 1, 0], 'india': [8, 1, 7, 13], 'international quality': [0, 0, 1, 0], 'average growth rate': [0, 0, 1, 0]}

The correct answer is:

Both A and R are individually true, and R is the correct explanation of A.

Explanation:

The assertion (A) states that India`s software exports increased at an average growth rate of 50% since 1995-96. This is true. India`s software industry experienced rapid growth during this period, with significant increases in software exports.

The reason (R) states that Indian software companies were cost-effective and maintained international quality. This is the correct explanation of why India`s software exports increased at such a high growth rate. Indian software companies were known for their cost-effectiveness, offering competitive rates for software development and services. Additionally, they were able to maintain international quality standards, providing high-quality software solutions to clients worldwide. These factors contributed to the success and growth of India`s software exports.

Therefore, both statements A and R are individually true, and R is the correct explanation of why India`s software exports increased at an average growth rate of 50% since 1995-96.