India’s economic footprint, given its population, still remains small compared to the US, the European Union or China. It has much to learn from other economies, yet must implement solutions that fit its unique circumstances. India especially needs an effective long-term regulatory system based on collaboration rather than the ‘current top-down approach. Regulations seek desirable outcomes yet are repeatedly used as political tools to push one agenda or another. Often, regulations fail to consider impacts on jobs and economic growth—or less restrictive alternatives. Regulations may be used to protect local markets at the expense of more widely shared prosperity in the future. Additionally, regulations inevitably result in numerous unintended consequences. In today’s hyper competitive global economy, regulations need to be viewed as ‘weapons’ that seek cost-justified social and environmental benefits while improving the economic well-being of most citizens.
On the basis of the above passage, the following assumptions have been made:
In today’s global economy,

Correct Option (3)

Both Assumption 1 and Assumption 2 are valid based on the provided passage.

• Assumption 1: regulations are not effectively used to protect local markets.

  The passage states, "Regulations may be used to protect local markets at the expense of more widely shared prosperity in the future." This implies that while regulations are applied for market protection, their overall effectiveness is compromised by negative long-term economic impacts, thus validating the assumption that they are not effectively used in a holistic sense.

• Assumption 2: social and environmental concerns are generally ignored by the governments across the world while implementing the regulations.

  The passage explicitly mentions that "regulations fail to consider impacts on jobs and economic growth-or less restrictive alternatives." Furthermore, it advocates for regulations to "seek cost-justified social and environmental benefits," implying that this is not consistently the current practice. This supports the inference that social and environmental considerations are often overlooked during the implementation of regulations.

Incorrect Options:

Options 1, 2, and 4 are incorrect because they do not fully align with the implications drawn from the passage regarding both assumptions. The passage provides sufficient grounds to validate both Assumption 1 and Assumption 2, making option 3 the only correct choice.