Reading comprehension Test 1-Solved passage Question and answers

6)

Questions Continued....

PASSAGE 1 (Questions 5-10)

On attending a conference, which focused on the role of the services sector in Indian economy I was amazed. The conference gave a very interesting perspective on the role of the service sector in the growth of Indian economy in relation to growth rates in agriculture and industry. The current situation in India is that the growth rate of services has overtaken both agriculture and industry and is now contributing to more than 50% of GDP. The service sector has the highest growth rate and is the least volatile sector. Growth is particularly marked in public services, IT and financial services.

In some areas, the growth rate of the service sector is 40-50% due to increased use of mobile technologies. India, therefore has, a service-oriented economy. It hasn't followed traditional growth models as in China. However, in the process of doing so it has skipped the manufacturing stage and has jumped straight from the agriculture stage to service stage, which is also the main reason for the expansion of the service sector. In fact, the situation now is such that the growth in the service sector can and will support in the agriculture and industrial sectors. However, the only setback for Indian economy is the lack of growth in the manufacturing sector which causes dependence on other countries, which is not so desirable in terms of job creation and increased prosperity.

Population is also a major concern of the Indian economy. As the population of India grows so also does the number of dependents in the population in both the lower and higher age groups. In such a scenario of increasing population, especially in an economy which still recovering from crisis, growth becomes difficult. For such an economy to grow it has to invest. Currently, the public sector invests more than it saves. The household sector saves in surplus, but it is not increasing so it cannot continue to support private and public sectors. There is a massive need to spend on agriculture and infrastructure development of the country. Apart from that health and education should also be the priority of the government particularly the education of women in order to reduce the birth rate.

[SBI PO, 2014]

What does the author mean by the statement, ... a 'growth window' for India will open?

A)
In the coming years, the Indian economy will grow as the service sector of the country would be booming due to the focus of the government in that sector
B)
In the next two decades, Indian economy will have an opportunity to grow as the working population of India will be high as compared to the dependent population
C)
There would be only a small period of time in which the economy of India has to grow and if it fails to do so it will never be able to recover from the economic downfall
D)
Only upto the next two decades would Indian people be interested in finding jobs in the country beyond which they would search for jobs abroad thus hampering the growth of Indian economy
E)
The growth of Indian economy is like a small window and in order to substantiate the growth it is important to increase the size of the window by improving trade relations with other countries

Discussion

7)

Which of the following is true as per the passage?

A)
India has not followed the conventional model of growth and has moved directly from the agriculture sector to the service sector
B)
The service sector of the country is yet to make a mark on the IT and financial sectors of the country
C)
With availability of labour and growth in human skills, the service sector of Indian economy is booming limitlessly as there is no restriction on movement of labour
D)
India has become self-reliant and does not have to depend on other countries because of the development in the manufacturing sector
E)
All of the above

Discussion

8)

What does the author mean by the statement, 'to change the bad sectors to good sectors.'?

A)
In order to deal with the problem of poverty it is important to distinguish between good and bad sectors and encourage people to start searching for jobs in the good sectors
B)
The government should make efforts to improve the sectors that are not functioning well in order create greater job opportunities in those sectors and in turn eradicate poverty
C)
Poverty alleviation is possible only. if the government understands the importance of good sectors and provides it with necessary opportunities
D)
The bad sectors of the country should be identified and such jobs should be outsourced to other underprivileged countries in order to eradicate poverty from those countries
E)
People should be educated to ensure that they work only in the good sectors and in turn the issue of poverty in the country is resolved

Discussion

9)

According to the author, which of the following can be said about the growth of service sector in India?

A)
India is essentially an agrarian economy and is not yet ready to shift focus from agriculture sector to service sector
B)
The expansion of service sector in India was seen mainly because of the growth in the agricultural sector
C)
Indian economy cannot run only on the basis of service sector i.e. without further development in the agriculture and the industrial sector
D)
The growth of service sector in India is facilitated by the improvement in technology
E)
It will take the service sector at least around two decades before it can overtake the agriculture and industry sector

Discussion

Reading comprehension passage-1

Answer: Option B

Answer: Option D

Answer: Option C

Answer: Option D