Assertion: The Governments have established industries in several backward areas.
Reasoning: Governments adopt regional policies to promote balanced economic development.

Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.

The correct answer is Option 1: Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.

Assertion: The Governments have established industries in several backward areas. The Assertion is a true statement — governments often set up industries in backward or underdeveloped areas to generate employment, improve infrastructure, and stimulate local economies.
Reasoning: Governments adopt regional policies to promote balanced economic development. The Reasoning is also true — promoting balanced regional development is a key goal of regional economic policies.

The Reasoning correctly explains the Assertion: Governments establish industries in backward areas as part of their regional development policies to reduce regional disparities and ensure inclusive growth.