Q.1-10. Read the following passage carefully and answer the questions given below it. Certain words have been printed in bold to help you locate them while answering some questions.
The origin of India’s foreign trade can be traced back to the age of the Indus Valley civilization. But the growth of foreign trade gained momentum during the British rule. During that period, India was a supplier of food stuffs and raw materials to England and an importer of manufactured goods. However, organised attempts to promote foreign trade were made only after Independence, particularly with the onset of economic planning. Indian economic planning completed five decades. During this period, the value, composition, and direction of India’s foreign trade have undergone significant changes. In early 1990s the Indian economy had witnessed dramatic policy changes. The idea behind the new economic model known as Liberalization, Privatization, and Globalization in India (LPG), was to make the Indian economy one of the fastest growing economies in the world. An array of reforms was initiated with regard to industrial, trade and social sector to make the economy more competitive. Earlier India was afraid of global companies and the government ensured high tariff barriers. But now the scenario is changing and the competition is looked at from the holistic angle.
Post 1991, India faced the worst economic crunch in terms of its FOREX reserves. Foreign exchange crunch made India close to defaulting on loans. The response was a slew of domestic and external sector policy measures partly prompted by the immediate needs and partly by the demands of the multilateral organisations, it was none other than the Finance Minister who gifted India with liberalization. The License Raj and the large number of trade barriers were intended to be done away with. Opening up the economy (to MNCs and foreign investors) including the core and financial sectors to private and foreign companies transformed India into a land of opportunities. The Industrial Policy of 1991 drastically affected the growth of Indian businesses by making trade boundaries more permeable. India is fast emerging as a global leader, what with its vast, natural resources, and huge base of skilled manpower. Combined with cutting edge technology, Indian trade market is making its presence felt all across the world. Indian products and services are seen as of international standards and globally competitive. Trade in India has made good progress on liberalizing trade regimes and cutting tariffs since the recent times, when most of the countries started with reforms.
Q.1. Which of the following statements is/ are FALSE in context of the passage?
(1) Earlier India was not afraid of global companies and the government had to ensure high tariff barriers.
(2) The origin of India’s foreign trade can be traced back to the age of the Indus Valley civilization.
(3) Post 1991, India faced the worst economic crunch in terms of its FOREX reserves.
(4) The License Raj and the large number of trade barriers were intended to be done away with after 1991.
(5) Both 1 and 3
Q.2. As per the passage the industrial policy of 1991 was intended to-
(1) To discourage foreign businesses from entering India
(2)To provide investment options to domestic corporations
(3) To make India’s trade boundaries non-permeable
(4)To end License Raj
(5) All except 3
Q.3. The idea behind the new economic model known LPG was-
(1)To restrict new reform measures
(2)To send foreign companies away from India
(3)To act as a catalyst for the Indian economy
(4)To impose high tariff barriers
(5) Not mentioned in the passage
Q.4. India is considered an emerging global leader because of-
(1) Its vast natural resources and huge base of skilled manpower.
(2) Its geographical diversity
(3) Its ethnic diversity
(4) Its huge industrial base
(5) All of the above
Q.5. Which of the following was not supplied to England by India in the colonial age?
(A) Agricultural products
(B) Skilled manpower
(C) Raw material
(1) Only C (2) Only B (3) Both B and C
(4) Both A and C (5) All of the above
Q.6-7. Choose the word most SIMILAR in meaning to the word printed in bold, as used in the passage.
Q.6. permeable
(1) passable (2) complex (3) diversify (4) uniform (5) apparent
Q.7. holistic
(1) different (2) new (3) comprehensive (4) unrefined (5) conventional
Q.8-10. Choose the word which is most nearly the OPPOSITE in meaning as the word printed in bold as used in the passage.
Q.8. array
(1) exhibition (2) individual (3) sequence (4) arrangement (5) interpolation
Q.9. momentum
(1) thrust (2) insignificant (3) propulsion (4) weakness (5) importance
Q.10. slew
(1) elevation (2) slant (3) combination (4) gradient (5) precipitation
Answers
Q.1. (1)
Q.2. (4)
Q.3. (3)
Q.4. (1)
Q.5. (2)
Q.6. (1) passable
Q.7. (3) comprehensive
Q.8. (2) individual
For other option:
Interpolation (N) - confidential statement
Q.9. (4) weakness
For other option:
Propulsion (N) - force
Q.10. (1) elevation
For other options:
Gradient (N) - declivity
Precipitation (N) - condensation
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