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?
Answer & explanation
Answer: (d) Neither 1 nor 2
The passage is critical of how liberalization was designed and lists jobless growth, persistent poverty and inequality as its results. It neither prescribes deeper global integration nor assumes that liberalization will in time reduce poverty and create enough jobs — its evidence points the other way.
- ✗ 1. Integration with the global economy is never proposed; the remedies the passage points to lie in agriculture, infrastructure, industrialization and education.
- ✗ 2. The author reports 'jobless growth, persistent poverty and rising inequality' since liberalization began — the opposite of this assumption.
Remember · An assumption the author's own evidence contradicts cannot be valid.
Question and answer: UPSC's official GS Paper II (2020, Series A) — paper ↗ · answer key ↗. Explanation: Minimalist IAS, checked 30 Sept 2026 (how we verify). ·