Q. Economic liberalization in India was shaped largely by the economic problems of the government than by the economic priorities of the people or by the long-term development objectives.
Thus, there were limitations in conception and design which have been subsequently validated by experience. Jobless growth, persistent poverty and rising inequality have mounted as problems since economic liberalization began. And all these years later, four quiet crises confront the economy: agriculture infrastructure, industrialization and education as constraints on the country’s future prospects. These problems must be resolved if economic growth has to be sustained and transformed into meaningful development.
Q1. Which of the following is/are the most rational and logical Inference/ Inferences that can be made from the passage?
1. It is essential to rethink and redefine the economic role of the state in the quest for development.
2. India has not made effective implementation of its policies in social sectors nor made sufficient investments in them.
Select the correct answer using the code given below.
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Correct Answer: (c) Both 1 and 2
Q2. With reference to the above passage, the following assumptions have been made:
1. India’s economy needs to be greatly integrated with global economy so as to create large number of jobs and to sustain its growth momentum.
2. Economic liberalization would cause large economic growth which would reduce poverty and create sufficient employment in the long run.
Which of the above assumptions is/are valid?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Correct Answer: (d) Neither 1 nor 2
Question from UPSC Prelims 2020 CSAT Paper
Explanation :
Answer 1 – The most rational and logical inference that can be made from the passage is option (c) Both 1 and 2. The passage suggests that there were limitations in the conception and design of economic liberalization in India, which have led to jobless growth, persistent poverty, and rising inequality. It further highlights the need to resolve the problems of agriculture infrastructure, industrialization, and education to sustain economic growth and transform it into meaningful development. This implies that rethinking and redefining the economic role of the state may be necessary, and India may need to make effective implementation of policies and investments in social sectors. Therefore, both 1 and 2 are valid inferences from the passage.
Answer 2 – Neither of the assumptions is valid according to the passage. The passage highlights that economic liberalization has led to jobless growth, persistent poverty, and rising inequality in India, and that there are several constraints on the country’s future prospects that need to be addressed for sustained economic growth and meaningful development. The passage does not suggest that greater integration with the global economy would automatically create large numbers of jobs or reduce poverty in the long run. Therefore, the correct answer is (d) Neither 1 nor 2.
