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9-E: Economic Growth \& OutSOurcing of India Processing What are two reasons wages for workers in India are lower than in many other countries? (select two answers) \( \square \) Wages for workers in India are not lower \( \square \) Indian law requires low pay for call center workers There is a lower cost of living (low labor cost) India has a large workforce

Ask by Gibbs Stuart. in the United States
Feb 25,2025

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Lower wages in India are due to a lower cost of living and a large workforce.

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The Deep Dive

One reason wages for workers in India are lower than in many other countries is due to the lower cost of living. India’s living expenses, including housing, food, and transportation, are significantly lower compared to many developed countries. As a result, businesses can offer lower wages while still providing employees with a reasonable standard of living. Another key factor is the large workforce in India, which creates a competitive labor market. With such a vast number of workers available, many individuals are willing to accept lower wages in order to secure employment, leading to overall lower wage levels across various industries, including outsourcing sectors like call centers.

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