As per the report of German Bank (Deutsche Bank) India will grow very fast in the following years mainly because of :

Human Capital Formation

The correct answer is option (4) : Human Capital Formation

Two independent reports on the Indian economy, in recent times, have identified that India would grow faster due to its strength in human capital formation. Deutsche Bank, a German bank, in its report on ‘Global Growth Centres’ (published on 1.7.05) identified that India will emerge as one among four major growth centres in the world by the year 2020. It further states, “Our empirical investigation supports the view that human capital is the most important factor of production in today’s economies. Increases in human capital are crucial to achieving increases in GDP.” With reference to India it states, “Between 2005 and 2020 we expect a 40 per cent rise in the average years of education in India, to just above 7 years...”

Note: This question is from Old NCERT (Pre rationalised book).