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In this video tutorial, Prakash Mitanni explains how to create cascading drop-down columns in SharePoint lists using SP services. He mentions that this can also be achieved using InfoPath, as he has demonstrated in previous videos. The first step is to create a column for the region, followed by columns for countries corresponding to each region. When a region is selected, only the countries corresponding to that region should populate in the drop-down list. Prakash demonstrates how to do this in SharePoint lists using SP services by creating a list named "output list" in SharePoint Online.