India has certain advantages which make it a favourite outsourcing destination. What are these advantages? | Learn NCERT solution | Education portal Class 11 Indian Economic Development | Study online Unit-3 Liberalisation, Privatisation and Globalisation



Q.11:- India has certain advantages which make it a favourite outsourcing destination. What are these advantages?

 

Answer:-

The advantages which make it a favourite outsourcing destination are:

1. Easy Availability of Cheap Labour: As the wage rates in India are comparatively lower than that of in the developed countries, MNCs find it economically feasible to outsource their business in India.



2. Skills: Indians have reasonable degree of skills and techniques also knowledge of international language, English.

3. Stable Political Environment: The democratic political environment in India provides a stable and secured environment to the MNCs to expand and grow.

4. Availability of raw material at cheaper rate: India is well enriched in natural resources. This ensures the MNCs cheap availability of raw material and undisturbed and perennial supply of raw materials. This enables proper and smooth operation of MNCs.