UPSC Prelims 2020·CSAT·Reading Comprehension·Passage Comprehension

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. 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?

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Last updated 23 May 2026, 3:31 pm IST
  1. A1 only
  2. B2 only
  3. CBoth 1 and 2
  4. DNeither 1 nor 2Correct

Explanation

An assumption is something taken for granted by the author of the passage. 1. India's economy needs to be greatly integrated with the global economy to create jobs and sustain growth — Invalid. The passage does not mention global integration as a means to create jobs or sustain growth. It only critiques the way liberalization was designed and the crises that have emerged since. Linking growth to global integration is not assumed in the text. 2. Economic liberalization would cause large economic growth which would reduce poverty and create sufficient employment in the long run — Invalid. The passage actually undermines this assumption: it states that since liberalization began there has been "jobless growth, persistent poverty and rising inequality." So the author does not assume liberalization will reduce poverty or create employment; rather he observes the opposite outcome. Neither assumption is valid. Answer: D.
Reading Comprehension: Economic liberalization in India was shaped largely by the economic problems of the government than by the economic prio
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