Passage Based Questions: Logical Reasoning - 1 | Passage Based Questions for CLAT Preparation PDF Download

Directions : Read the following passage and answer the questions.
It’s been said that markets stop panicking when the government starts panicking. True to form, the Indian stock market has been steadily rising in response to reforms since August, even as evidence mounts that the economy is still in the dire straits. The basic bet is that as reforms take hold, growth in India will return to normal.
Since the 1980s when India started to open to the outside world, its economy has tended to rise and fall with the global economy. That pattern held through the boom of the last decade, and the slowdown this decade, but started to break as BJP got over-confident in its grip on office, and began making major policy mistakes.
First came the radical experiment with demonetisation in late 2016, then the clumsy rollout of GST, the haphazard handling of stresses in the financial sector, and a soak the rich budget this July, which represented a step backward into India’s socialist past. India’s economy began to decouple from the rest of the world in 2007, when it missed out on the synchronised global upswing, and has slowed more sharply than its peers in the subsequent years. By this August, the pain in India was acute, marked by slumping car sales and piling inventories.
The government’s subsequent shift back to more conventional policies comes as a relief. If the past is any guide, the government will do just enough to stabilise the economy before it settles back into cruise control, likely at a significantly lower speed.
Though India’s official GDP growth rate has been suspect since it adopted a new methodology for gathering the data in 2015, Indians still tend to see 7% growth as the minimum threshold for economic success.