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Problem 15 - Olympiad

Which factor has primarily contributed to the rapid growth and expansion of the automobile industry in India since the early 1990s?

Correct: B

The liberalization of the Indian economy in the early 1990s allowed for increased Foreign Direct Investment (FDI), bringing in new technologies and global players. This, combined with the rising purchasing power of the middle class, significantly boosted demand for automobiles, leading to rapid growth in the industry.