UPSC Prelims 2015 · CSAT

Question 61: Reading Comprehension

Passage beginning “India has suffered from persistent high…” — Passage – 1 · as printed by UPSC

What is the most logical, rational and crucial message that is implied in the above passage ?

aUnder the present circumstances, India should completely avoid all trade liberalisation policies and all subsidies.

bDue to its peculiar socio-economic situation, India is not yet ready for trade liberalisation process.

cThere is no solution in sight for the problems of continuing poverty and inflation in India in the near future.

dEconomic reforms can often create a high inflation economy.

AnswerUPSC’s answer is (d).

The passage says India has had persistent high inflation and traces it to several causes that mostly come from economic reforms: opening to trade made the country more exposed to world prices, and cutting subsidies kept pushing up administered prices. The message is therefore that reforms can bring a high-inflation economy. It does not say India must avoid all liberalisation and subsidies, that India is not ready for reform, or that no solution exists to poverty and inflation.

Why each option is right or wrong

(a) Wrong: 'completely avoid' all liberalisation and subsidies is a prescription the passage does not give.
(b) Wrong: the passage does not say India is unready; it says reforms have contributed to inflation.
(c) Wrong: the passage says nothing about there being no solution in sight.
(d) Right: trade liberalisation and subsidy cuts are shown to have fed inflation.

Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.

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Source: UPSC, Civil Services (Preliminary) Examination 2015, General Studies Paper II (CSAT), Series A. The paper on upsc.gov.in.