Passage

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.

QUESTION

CSAT

Easy

Comprehension

Prelims 2019

Which one of the following is the most logical, rational and crucial inference that can be derived from the above passage?

Select an option to attempt

Explanation

Option A is incorrect. The passage does mention that India has much to learn from other economies and that its regulatory system needs reform. However, it does not directly claim that a better regulatory system will lead to India achieving an economy size that matches its population. The focus is more on the effectiveness and strategic nature of regulations rather than directly linking them to the economy's size.

Option B is correct. This is the most logical inference based on the passage. The passage stresses that in today’s global economy, regulations must be viewed as "weapons" that provide social, environmental, and economic benefits. The need for strategic use of regulations to balance these factors is emphasized, aligning with this choice.

Option C is incorrect. The passage doesn't explicitly state that Indian regulations hinder its global integration. It highlights problems with the current regulatory system but does not make a direct claim about India’s integration with the global economy being at risk due to regulations.

Option D is incorrect. While the passage mentions the failure of regulations to consider impacts on jobs and economic growth, it doesn't state that these factors should be the dominant considerations. Instead, the focus is on developing a long-term regulatory system that works in collaboration and balances various benefits, including economic growth, rather than solely prioritizing job creation or economic growth.