India's rise in the software industry was driven by America's labor shortage and India's skilled labor pool.
In the 1990s, the American software industry was experiencing rapid growth, and there was a shortage of skilled software engineers. This led to a situation where American companies were looking for ways to outsource their software development work to other countries with a large pool of skilled labor at lower wages. India was one of the countries that benefited from this trend, as it had a large population of English-speaking engineers who were well-educated and relatively inexpensive to hire.
The other answer choices are incorrect.
a. An autocratic state developing in India: This was not a concern for American software companies in the 1990s. In fact, India was a relatively democratic country with a stable political system.
b. Increased government regulation over India's software industry: This actually made India more attractive to American software companies, as it signaled that the Indian government was committed to creating a stable and business-friendly environment for IT companies.
c. A millennium virus attacking computers worldwide: This was a concern for all countries, including India. However, it was not a major factor in India's rise in the software industry.
d. A lack of raw materials for software production in other countries: Software is a digital product that does not require any raw materials to produce. Therefore, a lack of raw materials was not a concern for American software companies.
The correct answer is e. American software companies outgrowing its labor supply.