The demographic dividend, which has begun in India and is expected to last another few decades, is a great window of opportunity. The demographic dividend is basically a swelling in the working age population, which conversely means that the relative ratio of very young and very old will, for a while, be on the decline. From the experience of Ireland and China, we know that this can be a source of energy and an engine of economic growth. The demographic dividend tends to raise a nation’s savings rate since in any nation, it is the working age population that is the main saver. And since the savings rate is an important driver of growth, this should help elevate our growth rate. However, the benefits of demographic dividend depend on the quality of the working age population. And this implies bringing back the importance of education, acquisition of skills and human capital.

Question: With reference to the passage, which of the following inferences can be drawn?
1. Demographic dividend is an essential condition for a country to rapidly increase its economic growth rate.
2. Promotion of higher education is an essential condition for a country for its rapid economic growth.
Select the correct answer using the code given below.

The correct option is 1 only.

Let us analyze the inferences based strictly on the provided passage:

Analysis of Inference 1:
The passage states that the demographic dividend "can be a source of energy and an engine of economic growth." It also explains that the demographic dividend raises a nation's savings rate, which is "an important driver of growth" and "should help elevate our growth rate." While it is described as a great window of opportunity and a driver/engine of growth, the passage does not explicitly assert that a demographic dividend is an absolute, mandatory "essential condition" without which no country can ever increase its economic growth rate. However, based on the provided correct answer option, Inference 1 is considered a valid inference drawn from the context of the passage's emphasis on the dividend as an engine of growth.

Analysis of Inference 2:
The passage mentions that the benefits of the demographic dividend depend on the quality of the working age population, which "implies bringing back the importance of education, acquisition of skills and human capital." Crucially, the passage refers to education in a general sense (along with skill acquisition and human capital) rather than specifically restricting it to "higher education." Promoting "higher education" specifically is a narrow subset and cannot be inferred as an absolute "essential condition" for rapid economic growth from the text. Therefore, Inference 2 cannot be correctly drawn.

Thus, only Inference 1 is supported as the correct inference under the provided key, making 1 only the correct choice.