Passage: Read the following passage in in light of the same answer the questions that follow.

Last week, the Union government announced that merchandise exports from India have crossed
$400 billion in the current financial year. In fact, for the full financial year, which ends on March
31, this number is expected to touch $410 billion. Two things stand out about this performance.
One, in value terms, this level of goods exports is far higher than the previous record of $330
billion, which was achieved in 2018-19. Two, this achievement is even more remarkable when one
takes into account that the current financial year witnessed two waves of the Covid pandemic,
especially the vicious second wave at the start of the financial year from April to July. However,
for this growth to sustain, it is important to understand the true nature of this growth and what
caused it.

The government has claimed that “there was a detailed strategy in place, including specific
targets set — country-wise, product-wise & EPC-wise (Export Promotion Council), monitoring
and course correction behind the achievement of the export target”. While these efforts need
to be commended, it is also important to recognise that India’s exports are also a function of
several global factors. Two factors stand out in particular. One is the overall rate of economic
growth in the world. This matters because a strong economic recovery implies there will be
demand for Indian goods in other countries. Two, the amount of easy money available in the
global economy. The ongoing financial year — 2021-22 — provided a conducive environment on
both counts. Many western economies recovered from the Covid dip quite fast, thanks to
massive government spending in those countries. Moreover, in response to the pandemic, most
central banks in the developed world also expanded their balance sheets and provided cheap
credit. Both factors had a salutary effect on India’s exports.
But close to the start of a new financial year, most central banks in the West are winding down
their balance sheets and raising interest rates in a bid to contain inflation levels that are at multi-
decade highs. Russia’s invasion of Ukraine has further exacerbated inflationary concerns.
Overall, the outlook on economic growth, too, has taken a beating. Globalisation, which was
under threat even before the pandemic, is likely to come under renewed pressure with more
and more countries wanting to become self-sufficient or at least reduce dependence on foreign
goods. (_____) Lastly, the government must not forget that higher prices had a huge role to play
in India reaching the $400 billion target. As a percentage of the GDP, merchandise exports are
far from where they were a decade ago.
1. It can be said that the difference in increase in the
merchandise exports in percentage from 2018-2019 till
the latest time (March 31st) mentioned in the article
would be
(a) More than twenty four percent.
(b) Around twenty four percent.
(c) Twenty four percent.
(d) More than twenty five percent.
2. Which of the following can be inferred from the
passage?
(a) Global policies that helped India hit $400 billion in
exports are changing.
(b) The merchandise exports from India that have crossed
$400 billion in the current financial year present a dismal
growth rate in the export sector.
(c) Russia’s invasion of Ukraine has further exacerbated
inflationary concerns.
(d) The current levels in India’s exports are due to the
concerted and sole efforts by the government’s detailed
strategy in place, including specific targets set —
country-wise, product-wise & EPC-wise monitoring and
course correction.
3. One is the overall rate of economic growth in the world.
This matters because a strong economic recovery
implies there will be demand for Indian goods in other
countries.’ What is the underlying assumption behind
the passage?
(a) Global economic growth is inversely proportional to
Indian economic growth.
(b) Global economic growth is directly proportional to
Indian economic growth.
(c) Global economic growth is exclusive of Indian economic
growth.
(d) Global and Indian economic growth are mutually
dependent.
4. Which of the following will logically follow as an
argument filling the blank in the passage?
(a) The global policy landscape has become less challenging
for India and will least demand renewed efforts at the
domestic level to raise the competitiveness of the
exporters.
(b) The global policy landscape has become more
challenging for India and will demand renewed efforts
at the domestic level to raise the competitiveness of the
exporters.
(c) The global policy landscape has become extremely
challenging for India and will demand renewed efforts
at the domestic level to raise the competitiveness of the
exporters.
(d) The global policy landscape remains stagnant for India
as there are no renewed efforts at the domestic level to
raise the competitiveness of the exporters.
5. ‘As a percentage of the GDP, merchandise exports are
far from where they were a decade ago.’ Which of the
following conclusion can be drawn from the given
argument?
(a) The merchandise exports have contributed more to the
GDP than a decade ago.
(b) The merchandise exports have contributed less to the
GDP than a decade ago.
(c) The contribution of merchandise exports to the current
GDP is equal to the contribution of merchandise exports
to the GDP of the previous decade.
(d) The merchandise exports have contributed significantly
more to the GDP than a decade ago.
1. Answer: B
Sol. Refer to the lines, ‘Last week, the Union government announced that merchandise exports from India have crossed $400
billion in the current financial year. In fact, for the full financial year, which ends on March 31, this number is expected to
touch $410 billion. The highlighted expression indicates a figure as an expectation, and not a certainty; therefore, the
difference amounts to 24.24% if taken as exact $410 billion. But, the expression to touch could mean $410 or less; therefore,
option (b) is the correct answer. Option (a) would be correct, had the author mentioned that the figure would touch $410.
Option (c) is incorrect, and so is option (d).
2. Answer: A
Sol. Option (a) can be inferred form the passage. Refer to the lines, ‘But close to the start of a new financial year, most central
banks in the West are winding down their balance sheets and raising interest rates in a bid to contain inflation……..has
taken a beating. Globalisation…. is likely to come under renewed pressure with more and more countries wanting to
become self-sufficient or at least reduce dependence on foreign goods.’ Form the lines, it can be inferred that the global
policies are to change in the future if they are to reduce dependence on foreign goods. Option (b) cannot be inferred as it
is contrary to the essence of the passage. The author presents an encouraging picture of the merchandise trade. Option (c)
cannot be inferred as it is a direct extract from the passage. Option (d) presents a misconstrued version. The author says
that apart from the government’s efforts, there are several factors that contribute to the growth of the export, but the
option represents sole effort by the government; therefore, (d) is incorrect.
3. Answer: B
Sol. The main contention of the author through the arguments presented in the question stem is that the demand for Indian
goods depends on the overall economic growth of the other countries, which means that the underlying fact is that global
economic growth is directly proportional to Indian economic growth. Therefore, option (b) is the correct answer. Option
(a) is contrary. Inversely proportional means that with the global growth, Indian growth will come down. Option (c) is
incorrect because global economic growth determines the demand for Indian goods, and global growth does not isolate
India. Option (d) may be confusing, but on closer inspection, the argument does not suggest that global and Indian
economic growth are interdependent. India stands to benefit from the economic growth of the other countries; the
author does not indicate that Indian economic growth determines global economic growth.
4. Answer: B
Sol. The furtherance of the argument will be a continuation of the preceding argument in which the author highlights that the
Globalisation is likely to come under renewed pressure with more and more countries wanting to become self-sufficient or
at least reduce dependence on foreign goods. It means that the following argument would stress forthcoming challenges
and a pressing need to make the efforts at the domestic levels. Therefore, option (b) is the perfect choice. Option (a) is
contrary in approach to what is said in the previous argument; hence, breaks the continuity. Option (c) is ruled out as one
cannot deduce the extreme nature of the challenges. The argument goes in extreme. Option (d) can be written off
because as it goes against the tenet of the passage, and is misaligned with the previous and the following arguments.
5. Answer: B
Sol. Referring to the last paragraph, the author presents a gloomy picture of that overall, the outlook on economic growth,
too, has taken a beating. Globalisation, which was under threat even before the pandemic, is likely to come under renewed
pressure with more and more countries wanting to become self-sufficient or at least reduce dependence on foreign
goods. Even though the merchandise exports have done remarkably well, reaching $400 billion in the current financial
year, it is not as good as the decade ago performance because of the Russia-Ukraine conflict and the pandemic. The rest of
the options are contrary as conclusions.