Directions: Read the given passage and answer the questions that follow:
Numerous problems now causing the failure of India’s infrastructure are land clearance issues; insufficient compensation, unclear regulations, access to financing etc. After all, Indian’s philosophical attitude and the democracy system contribute a deep-rooted cause on the failure.
Comparing with China, China used infrastructure as a policy instrument and political tool to reduce poverty and generate growth trading off with the cost of enlarged inequality and huge regional disparity, while India emphasis more on redistribution which proved to be unsuccessful for it is self-destroying the impetus to generate robust and sustained growth. China managed to have strong integration and coordination between policy-making and implementation.
India is more technical rather than political driven and adopt a more participatory and democratic approach, causing duplication of responsibilities and weakened accountability among different levels of government and political parties, resulting in inefficient implementation and resource allocation. Nevertheless, Indian Government did have a strong will in growing infrastructure.
Structural and procedural reforms at various government levels have been taken place to facilitate infrastructure growth. Apart from local private capital and return from public user fees, Indian Government acknowledge that foreign investment is major source of investment into infrastructure sector, therefore she is providing more flexibility towards capital flow and is setting policy to lower the risk and increase private capital return.
Though the potential is promising, India inevitably face different present and future challenges during the path. Over the subsidy and investment issues, a good economic as well as incentive balance between tax-payers, public users, private local and foreign investors must be strived for. Consequently, pricing, tax regimes, stability in exchange rate and real interest rates will be the other conditions to formulate the model.
Also, a transparent and equitable regulatory framework, reliable judicial system with efficient dispute resolution mechanism will be vital. Given Indian democracy has got its stand in the decade of poverty, it will be a real challenge for this system to prove that it can lead the way to growing prosperity over this transition path.
Q1: What is the main purpose of the author in the passage?
(a) To highlight the challenges faced by India in growing its infrastructure.
(b) To analyze the potential of foreign investment in the Indian infrastructure sector.
(c) To contrast the approach taken by China and India towards infrastructure growth.
(d) To advocate for a transparent and equitable regulatory framework in India.
Ans: (c)
Sol: The author's main purpose is to highlight the contrast between the approach taken by China and India towards infrastructure growth. The author compares the Chinese model of using infrastructure as a policy instrument and political tool to reduce poverty and generate growth, with the Indian approach of emphasizing redistribution.
The author also highlights that India's democratic approach has led to duplication of responsibilities and weakened accountability among different levels of government, resulting in inefficient implementation. The author does touch upon the challenges faced by India in growing its infrastructure, the potential of foreign investment, and the need for a transparent and equitable regulatory framework, but these are not the main focus of the author's argument.
Hence, option C is correct.
Option A: While the author does mention the challenges faced by India in growing its infrastructure, it is not the main focus of the argument.
Option B: The author mentions the importance of foreign investment in the Indian infrastructure sector, but this is not the main purpose of the argument.
Option D: The author mentions the need for a transparent and equitable regulatory framework in India, but this is not the main focus of the argument. The author's main purpose is to highlight the contrast between the approach taken by China and India towards infrastructure growth.
Q2: All of the following statements can be inferred from the passage, EXCEPT:
I. India's infrastructure problems are caused by issues with land clearance, insufficient compensation, and unclear regulations.
II. The Indian government recognizes foreign investment as a major source of funding for infrastructure growth.
III. The Indian government is implementing reforms to increase infrastructure growth.
IV. India's emphasis on redistribution has proven to be unsuccessful in generating robust and sustained growth.
V. India's democracy system is a contributing factor to the success of the country's infrastructure.
(a) Only I
(b) Only III
(c) Only V
(d) Only II, IV
Ans: (c)
Sol: Statement-I: "India's infrastructure problems are caused by issues with land clearance, insufficient compensation, and unclear regulations" can be inferred from the passage as it states "Numerous problems now causing the failure of India’s infrastructure are land clearance issues; insufficient compensation, unclear regulations, access to financing etc."
Statement-II: "The Indian government recognizes foreign investment as a major source of funding for infrastructure growth" can be inferred from the passage as it states "Apart from local private capital and return from public user fees, Indian Government acknowledge that foreign investment is major source of investment into infrastructure sector, therefore she is providing more flexibility towards capital flow and is setting policy to lower the risk and increase private capital return."
Statement-III: "The Indian government is implementing reforms to increase infrastructure growth" can be inferred from the passage as it states "Nevertheless, Indian Government did have a strong will in growing infrastructure. Structural and procedural reforms at various government levels have been taken place to facilitate infrastructure growth."
Statement-IV: "India's emphasis on redistribution has proven to be unsuccessful in generating robust and sustained growth" can be inferred from the passage as it states "Comparing with China, China used infrastructure as a policy instrument and political tool to reduce poverty and generate growth trading off with the cost of enlarged inequality and huge regional disparity, while India emphasis more on redistribution which proved to be unsuccessful for it is self-destroying the impetus to generate robust and sustained growth."
However, Statement-V: "India's democracy system is a contributing factor to the success of the country's infrastructure" cannot be inferred from the passage as it states "After all, Indian’s philosophical attitude and the democracy system contribute a deep-rooted cause on the failure." The author is suggesting that India's democracy system is a contributing factor to the failure of the country's infrastructure, not the success.
The author also mentions that India's approach, which is more participatory and democratic, causes duplication of responsibilities and weakened accountability among different levels of government and political parties, resulting in inefficient implementation and resource allocation. This supports the idea that the democracy system is a contributing factor to the failure of the country's infrastructure.
Q3: What is most likely the passage is a part of?
(a) A news article on the state of India's infrastructure
(b) A research paper on comparative development in India and China
(c) A policy brief on the government's approach to infrastructure growth
(d) An economic analysis of the challenges facing India's infrastructure sector
Ans: (b)
Sol: Option A, "A news article on the state of India's infrastructure" is not the most likely as the passage provides in-depth analysis of India's infrastructure problems, comparing it to China's approach, discussing the government's efforts to improve the sector, and highlighting the challenges that need to be addressed. This level of detail and analysis is typically not found in a news article, which generally provides a concise overview of the subject.
Option B, "A research paper on comparative development in India and China" is the most likely as the passage compares the development approaches of India and China, pointing out their strengths and weaknesses, and explaining how India's democracy and philosophical attitude are contributing to the failure of its infrastructure. The passage provides a comprehensive analysis of the subject, making it a likely candidate for a research paper.
Option C, "A policy brief on the government's approach to infrastructure growth" is not the most likely as the passage not only discusses the government's approach but also provides a critical analysis of India's infrastructure problems, comparing it to China, and highlighting the challenges that need to be addressed. A policy brief would typically focus more narrowly on government policies and actions, and would not provide as in-depth an analysis of the broader context and challenges facing the sector.
Option D, "An economic analysis of the challenges facing India's infrastructure sector" is not the most likely as the passage provides a comprehensive analysis of the subject, including political, philosophical, and regulatory factors, in addition to economic ones.
An economic analysis would typically focus more narrowly on economic factors such as investment, pricing, and tax regimes, and would not provide as in-depth an analysis of the broader political and philosophical context. In conclusion, the passage is most likely a part of a research paper on comparative development in India and China as it provides a comprehensive analysis of India's infrastructure problems, comparing it to China, and highlighting the challenges that need to be addressed. The level of detail and analysis, as well as the comparative perspective, make it a likely candidate for a research paper.
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