Comprehension : Comprehension

Q 172 / 466

UPSC CSE Prelims 2020

Economic liberalization in India was shaped Iargely.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.

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?

EXPLANATION

Correct Option (D)

The passage indicates that neither of the assumptions is valid. It critically assesses the outcomes of economic liberalization in India, pointing to its limitations in conception and design. The text highlights adverse consequences such as jobless growth, persistent poverty, and rising inequality, and identifies internal structural challenges in agriculture, infrastructure, industrialization, and education as crucial constraints on the country's future prospects. The passage does not advocate for greater global economic integration, nor does it support the idea that liberalization alone would resolve poverty and unemployment.

Incorrect Options:

  • Assumption 1: The passage does not propose greater integration with the global economy as a solution to India's economic problems or for sustaining growth and creating jobs. Instead, it emphasizes the need to resolve internal "quiet crises" in sectors like agriculture, infrastructure, industrialization, and education, suggesting that domestic structural reforms are the primary focus for meaningful development.
  • Assumption 2: This assumption is directly contradicted by the passage. The text explicitly states that "Jobless growth, persistent poverty and rising inequality have mounted as problems since economic liberalization began." This indicates that economic liberalization, as implemented, has not led to the reduction of poverty or the creation of sufficient employment in the long run; rather, it has exacerbated these issues.