Reason (R) : Indian software companies were cost- effective and maintained international quality.
✓ Correct answer: a) Both A and R are individually true and R is the correct explanation of A
ExplanationAssertion (A) is true : India’s software exports ex- peri-enced an average growth rate of approximately 50% CAGR in the late 1990s, primarily fueled by the global demand for IT services from developed markets like the U.S. and Europe.The Y2K issue and the growth of outsourcing significantly contribut- ed to this surge.Reason (R) is true : Indian software companies such as TCS, In- fosys, and Wipro were globally competitive due to their cost-ef- fectiveness and adherence to international quality standards, including CMM Level 5 certifications.This helped establish In- dia’s reputation as a trusted IT outsourcing destination.As per NASSCOM reports and Mathur (2006), India’s IT sector leveraged its skilled workforce, competitive pricing, and quality assurance to gain a dominant share in the global IT services mar- ket.Thus, Reason (R) provides the correct explanation for Asser- tion (A).9
Practice more Economy PYQs
Attempt a free 10-question quiz or browse the full Economy previous-year-question bank with instant answers and explanations.
📈 Economy PYQs →