"India has become a favourable destination of outsourcing for most of the Multinational Companies (MNCs)." Justify the given statement with valid arguments.

Question

Accepted Answer

India has become a favourable destination for outsourcing for MNCs due to:

1. **Availability of Skilled Manpower:** India has vast skilled manpower, especially in IT, engineering, and management. This enhances faith of MNCs for investment.

2. **Favourable Government Policies:** MNCs get tax holidays, tax concessions, and other lucrative offers from Indian Government.

3. **Low Wage Rates:** Cheap labour available for skilled work compared to developed countries.

4. **Growth of IT Industry:** Indian IT industry has proved its competitive strength in the world.

5. **English Proficiency:** Large English-speaking population facilitates communication.

6. **Time Zone Advantage:** India's time zone allows 24/7 operations for global companies.

For example, Indian BPO companies are gaining prominence and earning precious foreign exchange.