Reading Comprehensions for SBI PO/Clerk 2018: 21 May

Reading Comprehensions for SBI PO/Clerk 2018: 21 May

Reading Comprehensions for SBI PO/Clerk 2018: 21 May

Directions (Q. 1-8): Read the following passage carefully and answer the given questions.
India’s reforms outlook can be looked at by dividing the reforms agenda in four separate categories. These are not reforms by themselves, but the desired outcome of the various reforms that are being pursued at present. The reforms objective is to transform India into a STAR — Simple, Transparent, Affluent, Resilient — economy.
Simple: In the last three years, the authorities have tried to simplify rules and regulations, so as to improve the ease-of-doing-business conditions in the country. The efforts have started bearing fruit slowly, with India’s current ranking having improved to 130 from 142 in 2014.
It can be expected that the government will remain focused on measures that will help improve the ranking substantially and persistently in the period ahead. Implementation of the goods and services tax (GST) from July will simplify the indirect tax structure, reduce geographical fragmentation and broaden the tax base, which will prove to be transformational for the Indian economy in the medium term.
The other area where India has made significant progress is in the foreign direct investment (FDI) space. Here, norms have been liberalised and simplified substantially since 2014. It can be expected that reforms in the FDI space will continue.
This, along with the focus on improving ease of doing business and GST implementation, should help sustain the positive momentum in the period ahead.
Transparent: The authorities have taken a number of steps in the last few years to improve transparency. Moving to a fair and transparent method of e-auctioning of national resources has been a welcome and bold step.
Deregulation of petrol and diesel prices, and linking them to global oil price movement, has helped eliminate discretion and distortion. Implementation of the bankruptcy code will help empower banks and usher transparency in the banking sector lending process.
And the recent move to demonetise high-value currency is also primarily directed towards increasing transparency in the economy. One can expect tax compliance to improve from the next year due to the demonetisation move. While the cash economy may still remain prevalent in the country, the increased pace of digitisation will help reduce the share of cash economy on the margin as compared to that in the pre-demonetisation period.
Affluent: India’s urbanisation rate increased by only 3 percentage points from 28% in 2001 to 31% in 2011. However, the government’s commitment to expedite the pace of urbanisation as a key medium-term objective is encouraging.
It is empirically true that by and large, the most economically affluent countries are also highly urbanised.
While urbanisation may not be the only factor that makes a country rich, it is undeniably one of the key catalysts that help propel an economy to a higher growth trajectory. Take China. Its emergence as an economic superpower has occurred hand in hand with rapid urbanisation. About 57% of China’s population are urbanised today, compared to only 20% in the late 1970s.
The government’s Smart Cities initiative should get a boost in the next two years. This will help accelerate employment and infrastructure in the economy.
Resilient: Since the 2013 currency crisis in India, steps have been taken by both the government and the Reserve Bank of India (RBI) to make the economy more resilient from both domestic and external shocks.
Foreign exchange reserves have increased substantially in the last three years. Along with the central bank’s focus to maintain positive real interest in the economy by keeping inflation low, this growth in forex has helped maintain stability in the exchange rate, a key source of comfort for investors.
Indeed, even with global uncertainty on the rise, India is currently regarded as a relatively safe investment destination compared to other emerging market peers. The government’s decision to stick to the fiscal consolidation agenda, despite numerous competing challenges, is also encouraging.
It also helps complement the RBI’s objective of preserving the hard-earned macro stability since mid-2013. The continuation of prudent fiscal and monetary stance should improve the medium-term growth narrative for India.
The overall macro outlook of the Indian economy looks positive. India has embarked on a journey to transform itself into a STAR — simple, transparent, affluent and resilient —economy, and the progress so far has been impressive.
Despite what has been achieved in the last few years, there is scope for incremental improvement, both in terms of India’s own potential and also in comparison to other emerging market peers.
One hopes the authorities push harder in the coming years to ensure that most of the medium-term objectives are met.
  1. What steps have been taken by the Central Government to sustain the momentum of economic growth in the period ahead? Answer in the context of the passage.
        1) Foreign direct investment norms have been liberalised and simplified substantially.
        2) Steps have been taken to improve ease of doing business.
        3) Efforts are on for the implementation of GST.
        4) Only 1) and 2)
        5) All 1), 2) and 3)
  1. What, according to the author, is the objective to reform India?
        (A) To simplify indirect tax system
        (B) To increase GDP
        (C) To transform India into a simple, transparent, affluent and resilient economy.
        1) Only (A)
        2) Only (B)
        3) Only (C)
        4) Only (A) and (B)
        5) All (A), (B) and (C)
  1. What is/are the expected outcome(s) of the implementation of GST?
        (A) It will reduce geographical fragmentation and broaden the tax base.
        (B) It will simplify the indirect tax structure.
        (C) It will have adverse effect on the Indian economy in the short term.
        1) Only (A) and (B)
        2) Only (B) and (C)
        3) Only (A) and (C)
        4) All (A), (B) and (C)
        5) Only (A)
  1. Which of the following statements is/are not true in the context of the given passage?
        1) To empower banks and usher transparency in the banking sector lending process bankruptcy code may be of great help.
        2) In the last three years, the authorities have tried to simplify rules and regulations so as to improve the ease-of-doing-business conditions in the country.
        3) Deregulation of petrol and diesel prices, and linking them to global oil price movement has increased the discretion of the concerned authority.
        4) Only 1) and 2)
        5) All 1), 2) and 3) are true
  1. What steps have been taken to improve transparency?
        (A) A transparent method of e-auctioning of natural resources has been adopted.
        (B) High-value currency has been demonetised.
        (C) Indian dual-tax structure has been changed.
        1) Only (A) and (B)
        2) Only (B) and (C)
        3) Only (A) and (C)
        4) All (A), (B) and (C)
        5) Only (B)
  1. Several statements with regard to urbanisation have been given in the passage. Find the incorrect statement.
        1) From 2001 to 2011, India’s urbanisation rate increased by only 3 percentage points.
        2) There is no doubt that by and large, the most economically affluent countries are also highly urbanised.
        3) The emergence of China as an economic superpower has occurred hand in hand with rapid urbanisation.
        4) Urbanisation is undeniably the only factor that makes a country rich.
        5) None of the above statements is incorrect
  1. Which of the following initiatives will help accelerate employment and infrastructure in the economy?
        (A) Make in India
        (B) Smart Cities
        (C) STAR economy
        1) All (A), (B) and (C)
        2) Only (A) and (B)
        3) Only (C)
        4) Only (B)
        5) Only (A)
  1. What, according to the author, is the overall macro outlook of the Indian economy?
        (A) It is gloomy.
        (B) It is positive.
        (C) It is passing through the phase of uncertainty.
        1) Only (A)
        2) Only (B)
        3) Only (C)
        4) None of the above
        5) Not clear from the passage

Answers:

  1. 5
  2. 3
  3. 1
  4. 3
  5. 1
  6. 4
  7. 4
  8. 2
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