Assertion (A): Indian companies such as Tata Steel and ONGC Videsh have expanded their operations to many other countries.
Reason (R): Low wage rates and the availability of skilled manpower have made India a destination for global outsourcing.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Both (A) and (R) are true but (R) is not the correct explanation of (A).
Assertion (A): Indian companies such as Tata Steel and ONGC Videsh have expanded their operations to many other countries. — True. Owing to globalisation, many Indian companies, including these two, work in many countries.
Reason (R): Low wage rates and the availability of skilled manpower have made India a destination for global outsourcing. — True. These two advantages bring outsourced services into India.
Why R does not explain A?
R is about foreign companies sending work into India. A is about Indian companies going out to other countries. Cheap labour at home does not explain why Indian firms set up abroad. The real reason is globalisation: it gives greater access to global markets, so large Indian firms can become important players abroad.
NCERT (2026-27): “Box 3.2: Global Footprint! Owing to globalisation, you might find many Indian companies have expanded their wings to many other countries. For example, ONGC Videsh, a subsidiary of the Indian public sector enterprise, Oil and Natural Gas Corporation engaged in oil and gas exploration and production has projects in 16 countries. Tata Steel, a private company established in 1907, is one of the top ten global steel companies in the world which have operations in 26 countries and sell its products in 50 countries. …” “3.7 Conclusion The process of globalisation through liberalisation and privatisation policies has produced positive, as well as, negative results both for India and other countries. Some scholars argue that globalisation should be seen as an opportunity in terms of greater access to global markets, high technology and increased possibility of large industries of developing countries to become important players in the international arena. …” “Outsourcing: … The low wage rates and availability of skilled manpower in India have made it a destination for global outsourcing in the post-reform period.” |