Question

You are a manager at BMW in Germany and your boss explains that BMW is thinking about putting a manufacturing plant in India. Your boss tells you that she has heard that India could have 15% of the world's global wealth by 2050 and is one of the emerging economies. She asks you what the reasons are that India's economy is growing. Which of the following answers would not be correct?

a. India has a large percentage of their population that is under the age of 35
b. India has stopped using 'catch-up' growth practices used by other developing economies
c. Poor economies like India can grow much faster than wealthy economies
d. Many corporations are outsourcing work to India
e. All the other answers are correct

Answer 1

India's economy is growing due to factors like a young population, catch-up growth potential, and the influx of outsourcing work. The claim that India has stopped using 'catch-up' growth practices is incorrect as it remains an essential strategy for their ongoing development.

Step-by-step explanation:

The correct answer to the question of what reasons are contributing to India's economic growth would exclude the option that India has stopped using 'catch-up' growth practices. Catch-up growth is an essential strategy for many developing economies as they aim to narrow the economic gap with higher-income countries. India's economy is growing due to a combination of factors.

• India has a large percentage of their population that is under the age of 35, which means a young workforce capable of driving economic growth and innovation.
• Poor economies like India can grow much faster than wealthy economies because they have more room to improve and catch up in terms of productivity and infrastructure development.
• Many corporations are outsourcing work to India, taking advantage of the skilled and often English-speaking labor force for services such as business process outsourcing (BPO).