Passage – Liberalization, Privatization and globalization introduced in 1991 has done more good than bad. But allowing it beyond a level will surely affect traders and ultimately the people. The drawbacks include loss of rich agricultural lands that are used by foreign industries for their own purposes. In this process we have lost thousands of hectares of fertile agricultural land since 1991. Also, foreign companies in collaboration with Indian companies have been allowed to mine for some key resources. It affects our tribals, forest dwellers and moreover these resources are outsourced whereas we bear the cost of pollution. Another common sight is loss to first and second level traders. When big super markets are set, it affects small local shops as well as second level traders since people prefer to go to super markets for everything they need. Thus placing greater reliance on market forces and competition as the primary means of increasing efficiency needs to be balanced with the growth opportunities not becoming skewed but becoming available for all.

Q. 1 With reference to the passage, the following assumptions have been made:

1.  There is a risk of economic crisis if the on-going models of liberalisation are not balanced with the inclusive growth as a key objective.
2. Western companies are always trying to take away and sell Indian resources in foreign market without giving their due share to the Indian companies.

Which of the above is/are valid assumption/assumptions?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Ans. D

Explanation – Both statement 1 and 2 are too extreme w.r.t the passage tone and passage content and hence option d) is correct.

 Q. 2 :- What is the most logical, rational and crucial message that is implied in the above passage?

(a) Under the present circumstances, India should completely avoid all trade liberalization policies.

(b) There is no solution in sight for the problems of continuous loss of resources in India.

(c) Economic reforms can be harnessed in the true spirit when they become inclusive by nature.

(d) Due to its peculiar socio-economic situation, India is not yet ready for trade liberalization process.

Ans. C

Explanation – Option a) and b) are too extreme when compared to the tone of the passage while option d) fails to connect with the message that is being conveyed by the passage. Hence only option c) is correct and can be verified from the passage tone and content.