Assertion (A): India's software exports increased at an average growth rate of 50% since 1995-96. Reason (R): Indian software companies were cost-effective and maintained international quality.

1. Assertion (A): India's software exports experienced phenomenal growth in the late 1990s. An average growth rate of 50% per year since 1995-96 is consistent with the reported figures for that era, driven by the IT boom and Y2K remediation projects. (True) 2. Reason (R): Key factors contributing to this export boom were the availability of skilled IT professionals at competitive wages (cost-effective) and the ability of Indian software companies to deliver services meeting international quality standards (e.g., through certifications like CMM). (True) 3. The cost-effectiveness and quality maintenance mentioned in R were the primary drivers behind the rapid growth in software exports described in A. Therefore, R is the correct explanation of A.