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?

Passage

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 quite crises confront the economy; agriculture, infrastructure, industrialization and education as constraints on the country’s future prospects. These problems must be resolved in economic growth has to be sustained and transformed into meaningful development.

Question

CSATMediumPrelims 2020Comprehension

With reference to the above passage, the following assumptions have been made:

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.
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

Statement 1 is incorrect. The passage attributes jobless growth, persistent poverty, and rising inequality to economic liberalization. The author highlights these issues as consequences of liberalization, contradicting the assumption that these problems would be resolved by liberalization.

Statement 2 is incorrect. The passage stresses that sustained economic growth—not economic liberalization—is essential for addressing poverty and creating employment opportunities in the long term. The author views economic liberalization as the cause of jobless growth rather than the solution to these problems.