By 2020, when the global economy is expected to run short of 56 million young people, India, with its youth surplus of 47 million, could fill the gap. It is in this context that labour reforms are often cited as the way to unlock double-digit growth in India. In 2014, India's labour force was estimated to be about 40 per cent of the population, but 93 per cent of this force was in unorganized sector. Over the last decade, the compound annual growth rate (CAGR) of employment has slowed to 0.5 percent, with about 14 million jobs created during last year when the labour force increased by about 15 million.

Correct Option (B)

The passage identifies India's demographic advantage with a significant youth surplus, contrasting it with a projected global youth shortage. However, it immediately highlights internal challenges: 93% of India's labour force is in the unorganized sector, and employment growth (0.5% CAGR) lags behind the increase in the labour force. In this context, labour reforms are explicitly mentioned as the mechanism to "unlock double-digit growth." Therefore, the most rational inference is that labour reforms are essential to effectively utilize India's large workforce and enhance productivity for economic growth.

Incorrect Options:

Option (A) is incorrect because the passage does not advocate for population control. Instead, it focuses on the productive engagement and utilization of the existing and growing labour force through policy interventions like labour reforms.

Option (C) is incorrect. The passage states that labour reforms are "the way to unlock double-digit growth," implying a condition precedent rather than an immediate or imminent achievement. It does not suggest that India is poised to achieve this growth "very soon" without the necessary reforms.

Option (D) is incorrect. While the passage notes India's youth surplus could "fill the gap" in the global economy, its primary focus immediately shifts to India's internal labour market issues, such as the unorganized sector and slow job creation, and the necessity of labour reforms for *India's* own economic growth. The passage does not primarily infer India's capability to supply skilled young people to other countries as its main point.