📈 EconomyUPSC 1999Fundamentals of Economy

Assertion (A): Information technology is fast becoming a very important field of activity in India. Reason (R) : Software is one of the major exports of the coun- try and India has a very strong base in hardware.

a​Both A and R are true and R is the correct explanation of A ​
bBoth A and R are true but R is not a correct explanation of A ​
cA is true but R is false ​
dA is false but R is true
✓ Correct answer: c) A is true but R is false ​
ExplanationAssertion (A) is true : Information technology (IT) has become a key sector in India’s economy, contributing sig- nificantly to GDP, exports, and employment.The growth of IT services, software development, and business process out- sourcing (BPO) has positioned India as a global leader in the industry.Government initiatives, a large English-speaking work- force, and cost advantages have further boosted IT expansion.Reason (R) is false : While software exports are indeed a major component of India’s IT sector, the country has not tradition- ally had a strong base in hardware manufacturing.Unlike software, which flourished due to outsourcing, India’s hardware sector has remained underdeveloped due to import dependen- cy, lack of infrastructure, and high production costs.Only in recent years have initiatives like “Make in India” and the Pro- duction Linked Incentive (PLI) scheme sought to strengthen domestic hardware manufacturing.291

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