In the question given below there are 2 statements marked as Assertion (A) and Reason (R). Choose the correct alternative from the following options.

Assertion (A)- Various types of tax concessions and subsidies are offered by the government of India to production units.
Reason (R)- In order to promote backward areas and balance out regional disparities various initiatives are taken by the government.

Both (A) and (R) are true and (R) is the correct explanation.

One of the objectives of the budget includes the reduction of regional disparities in the country. For that, the government of India encourages the setting up production units in regionally backward areas. Also. various tax concessions and subsidies are provided for the same. The government has also encouraged the setting up of  SEZs i.e. special economic zones to promote regional development.