Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

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

Question:

What is the reason behind India being a major destination for global outsourcing?

Options:

Restrictive policies of the government

Availability of capital intensive goods

Availability of cheap labour

All of the above

Correct Answer:

Availability of cheap labour

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.