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Store is basic repository or variable that contains all the data which is to be used in your entire application. Instead of saving data locally in each component, using concept of Redux, you make a single store and then maintain data inside it so that if you have to change any data just change at one single place and no multiple copies of same variable will be present. Thus, this data inside store becomes single source of truth for the entire application.
This function contains a Switch-Case statement which after matching
action.type executes code inside respective case block, most often manipulating or updating a copy of current state, and then returns back the modified copy to be used further on in the application.
Action is a simple object that has a couple fixed properties. The first property is 'type' which defines the type of action. The second is payload which contains data that is to be updated or used by the reducer when this action is passed to the "Reducer Function" (via Dispatch).