Comprehension-2

Class X

Read the following passage and answer the following questions.

1. Looking at various indicators such as increasing trend in the index

of Industrial Production and GDP growth rates, there is a clear signal

that the economy is back on track. Disturbances on account of

demonetization and the goods and services tax (GST) were purely

short term, and short-term disturbances were only to be expected.

Employment- generating sectors like construction, the worst hit by

demonetization, have already started reviving- demand is picking up

because of falling prices and this is obviously due to minimum

exposure to black money. There are indications that the government is

realizing the need to move towards the ideal GST by addressing the

glitches experienced at present. Moreover, with the revival of India’s

major markets such as US, Eurozone and Japan since September 2017,

exports have started picking up, accounting for about 15% of the GDP.

However, a major challenge is the worsening rural crises. It is worth

recalling that India was insulated from the sub-prime crisis in 2008-09

mainly because of rural economy. The rural economy’s contribution

to GDP may not be significant. But in terms of aggregate demand, the

rural population impacts more than 50% of the market base. What I

mean is, when you talk about markets, you talk about population.

And in terms of purchasing power, half the population of the country

is still in the villages and is very crucial for the growth we are looking

for.

2. On the agricultural front, while increasing input costs have to be

borne by the farmers, when it comes to reaping the benefits of market

prices for agricultural produce or rise in minimum support prices

(MSP), they are deprived as they do not have direct access to the

market. Unless these fundamental problems are addressed and

corrective steps initiated, there is no point in simply raising the MSP

which in reality benefits middlemen. Similarly, farmers should be

enabled the play their role as an effective supply force in the market

and be in a position to sell their produce at a competitive price. That

is possible only when _______ infrastructure support is built for them.

Unfortunately, the wisdom of both the government and the opposition

does not extend beyond traditional approaches like MSP or farm loan

waivers.

3. On the external front, the government faces three major

challenges: the Federal Reserve’s approach, rising crude oil prices,

and the move towards protectionism by India’s major export market,

the US. It is reported that the Federal Reserve is in for three hikes in

the next one year. This May upset not only the stock market but also

rates of exchange. Withdrawal by foreign institutional investors in

response to federal hikes may weaken the Indian currency and end up

in a higher import bill, especially on the crude oil front, if exports do

not pick up. The government has to bring about strong reform

measures. However, it may not take the risk during an election year.

Against this background, policymakers should not venture into

countering FII’s withdrawal by forcing domestic institutional

investors such as LIC, UTI, or public sector banks to enter the market

as it may lead to the creation of a bubble economy. Rising crude prices

is another challenge the government has to deal with, especially in

terms of imported inflation. Another negative signal is the US’s

initiatives in terms of protectionism.

1. Which of the signs indicate the revival of of economy after major

changes introduced by the government?

a) reduced exposure to black money has affected the prices which

finally pushed the demand

b) exports from India have risen due to resurgence of major markets

c) sectors which were severely affected by the changes have seen

recovery

d) all of these

2. Why does author mention that the rural economy saved India

from the crisis of 2008-09?

a) Agriculture is predominantly a nature-based activity and is

therefore cost effective

b) Share of contribution of agriculture to the GDP has steadily been

rising

c) In spite of low contributions in GDP, the widest consumer base of

India is within the rural areas

d) Rural communities were thoroughly incorporated into the larger

economic processes before the crisis

3 .Which of the following statement is appropriate in context of

Minimum support price?

i)farmers usually fail to derive the optimum benefits of MSP

ii)failure to access the markets easily prevents the farmers to avail

gains under MSP

iii)MSP is provided to target the maximum benefits of the middlemen

a) only i

b) only iii
c) both ii & iii

d) both i & ii

4. Select appropriate filler for the blank given in the passage.

a) rudiment

b) adequate

c) lofty

d) louden

5. Which of the following statement is INCORRECT in context of

the information available in the passage?

a) provision of adequate infrastructure to farmers will enable them

to contribute effectively in the supply chain

b) hike in crude oil prices comes as an external challenge to the

government during worsening rural crisis

c) a huge section of Indian population is still in rural areas and must

be taken into consideration when planning for overall growth

measures

d) all are correct

6. How will the Federal Reserve’s upcoming approach affect India?

a) with worsening ecological conditions of agriculture imports within

India may be affected

b) it may devalue Indian currency as foreign institutional investors

may withdraw from Indian markets

c) affected exports may lead to higher imports burden especially

those of crude oil

d) both b & c

7. Which of the following is opposite in meaning to CRUCIAL, as

used in the given passage? ( Para 1)

a) consequential

b) trifling

c) pivotal

d) influential

8. Which of the following is similar in meaning with IDEAL, as used

in the given passage? (Para 1)

a) sumptuous

b) gauche

c) exemplary

d) dignified