Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Liberalisation, Privatisation and Globalisation - An Appraisal

Question:

Answer the following questions after reading the paragraph given below:

“On a morning, a few minutes before 7 A.M., Deeksha, who is an employee in Easyveasy ltd. sat in front of her computer with her headset on and said in accented English ‘Hello, Kinsey’. Seconds later, she gets the reply, ‘Hello, Deeksha’. The two chatted excitedly before Deeksha said that ‘we will work on pronouns today’. Nothing unusual about this chat except that Deeksha, 22, was in Delhi and her student Kinsey, 13, was at her home in New Jersey,USA. Using a simulated whiteboard on their computers, connected by internet, and a copy of Kinsey's textbook in front of Deeksha, she guides the teenager through the intricacies of nouns, adjectives and verbs. Deeksha, who grew up speaking Hindi, was teaching Kinsey English grammar, comprehension and writing.”

Why has India become a destination for global outsourcing in the post-reform period?

Options:

Low wage rates

Availability of skilled manpower

Favourable government polcies like tax concessions

All of the above

Correct Answer:

All of the above

Explanation:

Most multinational corporations, and even small companies, are outsourcing their services to India where they can be availed at a cheaper cost with reasonable degree of skill and accuracy. The low wage rates and availability of skilled manpower in India have made it a destination for global outsourcing in the post-reform period. Apart from that Indian government also offers tax concessions and holidays to various MNC's.